Exhibit 10.9
HORACE MANN NONQUALIFIED
SUPPLEMENTAL
MONEY PURCHASE PENSION
PLAN
ARTICLE I.
ESTABLISHMENT AND PURPOSE OF
PLAN
1.1 Plan Establishment and
Amendment. Horace
Mann Service Corporation originally established the Horace Mann
Nonqualified Supplemental Money Purchase Pension Plan (the
“Plan”) effective April 1, 2002. The Plan is
hereby amended and restated effective as of January 1, 2009.
This Plan shall be interpreted and applied at all times in
accordance with Code Section 409A, and guidance issued
thereunder. No benefits under the Plan shall be subject to
“grandfathering” treatment under Code
Section 409A, even if such benefits were deferred and vested
under the Plan before January 1, 2005.
1.2 Purpose of
Plan. The purpose of
the Plan is to provide supplemental retirement benefits to certain
executives and other key employees of Horace Mann Service
Corporation who are members of a select group of management or
highly compensated employees of Horace Mann Service Corporation
within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of
ERISA. The Plan is designed to provide certain benefits not
available under the HMSC Money Purchase Pension Plan, a qualified
plan under Section 401(a) of the Code, due to limitations
imposed by the Code. Previously such benefits were provided as the
“NQMPPP Feature” of the Horace Mann Executive
Supplemental Employee Retirement Plan (the “ESERP”).
The ESERP was frozen effective March 31, 2002. For those
participants in the ESERP on March 31, 2002 who had a positive
account balance under the ESERP’s NQMPPP feature, the benefit
under the ESERP represented by the value of the participant’s
NQMPPP Feature account (a memorandum account) as of March 31,
2002, has been transferred to the Plan as provided under the ESERP
and as referenced hereunder.
ARTICLE II.
DEFINITIONS
The following terms shall have the
following meanings when used herein:
2.1 Account
means a memorandum account
maintained by the Committee for each Participant for bookkeeping
purpose only, to which is credited, if applicable, the Prior Plan
Benefit as of April 1, 2002 and which is further adjusted from
time to time as provided in Article III.
2.2 Beneficiary
means the Participant’s
surviving spouse, but if the Participant has no surviving spouse
then the individual, individuals, trust or estate designated by the
Participant on the beneficiary designation form provided to the
Participant (with only the last such beneficiary designation to be
effective), but if the Participant has made no effective
beneficiary designation as of the date of the Participant’s
death, then the Participant’s surviving children, but if
there are no surviving children of the Participant then the
Participant’s estate.
2.3 Code
means the Internal Revenue Code of
1986 as from time to time amended.
2.4 Committee
means the Committee appointed by
HMSC for the purpose of administering the Plan.
2.5 Company
or HMSC means Horace
Mann Service Corporation and any successor thereto.
2.6 Company
Credits means the
amount credited to a Participant’s Account under the
provisions of section 3.1 or 3.2, whichever applicable.
2.7
Compensation means
compensation as defined in the HMSC MPPP except not subject to any
limitation imposed under Section 401(a)(17) of the
Code.
2.8 Eligible
Participant means a
Participant who is an employee of HMSC and who has not been
designated by HMSC as ineligible to be credited with a Company
Credit for a particular Year; provided, however, that an individual
shall cease to be an Eligible Participant immediately upon his or
her Separation from Service.
2.9 Employer
means the Company and all persons
with whom the Company would be considered a single employer under
Code Sections 414(b) and 414(c), except that in applying Code
Sections 1563(a)(1), (2) and (3) for purposes of
determining a controlled group of corporations under Code
Section 414(b), the language “at least 50 percent”
shall be used instead of “at least 80 percent” in each
place it appears in Code Sections 1563(a)(1), (2) and (3), and
in applying Treas. Regs. Sec. 1.414(c)-2 for purposes of
determining a controlled group of trades or businesses under Code
Section 414(c), the language “at least 50 percent”
shall be used instead of “at least 80 percent” in each
place it appears in Treas. Regs. Sec. 1.414(c)-2.
2.10 ERISA
means the Employee Retirement Income
Security Act of 1974 as from time to time amended
2.11 Excess
Compensation means
any Compensation in excess of the compensation that can be taken
into account under the HMSC MPPP as subject to any limitation
imposed under Section 401(a)(17) of the Code.
2.12 HMEC
means Horace Mann Educators
Corporation, the parent company of HMSC.
2.13 HMSC MPPP
means the HMSC Money Purchase
Pension Plan as currently in effect and as from time to time
amended.
2.14 Investment
Return means the
positive or negative rate of return (taking into account earnings,
gains and losses) applicable during the relevant period hereunder
to those assets of the HMSC MPPP which represent contributions made
to the HMSC MPPP prior to July 1, 2002 (as adjusted for
earnings, gains and losses).
2.15
Participant means
an employee of HMSC (a) whose Compensation exceeds the maximum
amount of compensation allowable to be taken into account by a
qualified plan under Section 401(a)(17) of the Code,
(b) who is a member of a select group of management or
highly
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compensated employees of HMSC, and (c) who
has been designated by HMSC as a participant in the Plan.
Participant also includes a former employee of HMSC for whom
an Account is maintained under the Plan and a current employee of
HMSC who is not currently an Eligible Participant but for whom an
Account is maintained under the Plan.
2.16 Plan
means the Horace Mann Nonqualified
Supplemental Money Purchase Pension Plan as set forth herein and as
from time to time amended.
2.17 Plan Year
or Year means the
12-month period beginning each January 1 and ending each
succeeding December 31.
2.18 Prior Plan
Benefit means the
benefit of a Participant under the Horace Mann Executive
Supplemental Employee Retirement Plan (“ESERP”)
represented by the Participant’s “NQMPPP Feature
account” which benefit was transferred to the Plan pursuant
to the provisions of the ESERP and credited to the
Participant’s Account in the Plan as of April 1,
2002.
2.19 Separation from
Service means the
Participant has a termination of employment with the Employer.
Whether a termination of employment has occurred shall be
determined based on whether the facts and circumstances indicate
the Participant and Employer reasonably anticipate that no further
services will be performed by the Participant for the Employer;
provided, however, that a Participant shall be deemed to have a
termination of employment if the level of services he or she would
perform for the Employer after a certain date permanently decreases
to no more than twenty percent (20%) of the average level of
bona fide services performed for the Employer (whether as an
employee or independent contractor) over the immediately preceding
36-month period (or the full period of services to the Employer if
the Participant has been providing services to the Employer for
less than 36 months). For this purpose, a Participant is not
treated as having a Separation from Service while he or she is on a
military leave, sick leave, or other bona fide leave of absence, if
the period of such leave does not exceed six months, or if longer,
so long as the Participant has a right to reemployment with the
Employer under an applicable statute or by contract.
2.20 Specified
Employee has the
meaning given such term by the Board of Directors of the Company by
separate action given effect from time to time under Code
Section 409A.
2.21 Years of Vesting
Service at any
particular time means the same number of years of vesting service
credited to the Participant at such time under the provisions of
the HMSC MPPP.
ARTICLE III.
ADJUSTMENTS TO
ACCOUNTS
3.1 Company Credits for
Eligible Participants With 5 or More Years of Vesting Service as of
April 1, 2002. As of each payroll payment during each Plan Year
the Committee will credit to the Account of each Participant who
(a) is an Eligible Participant as of such day, and (b) as
of April 1, 2002 had 5 or more Years of Vesting Service, an
amount eq
