RELEASE & SEPARATION AGREEMENT

Exhibit 10.1

RELEASE & SEPARATION AGREEMENT

The parties to this Separation Agreement (hereinafter “Agreement”) are Cindy J. McPike (“Employee”) and StanCorp Financial Group, an Oregon corporation, as hereinafter defined.

For purposes of this Agreement the “Company” or “Employer” means StanCorp Financial Group, Inc., an Oregon corporation. The provisions of this Agreement shall be deemed to inure to the benefit of StanCorp Financial Group, Inc., Standard Insurance Company, their predecessors, successors, parents, subsidiaries, affiliates, and all officers, directors, employees, insurers, owners, agents, assigns and attorneys of each of those entities in their individual and representative capacities, all of whom shall be deemed “Releasees”.

Employee and Company have mutually agreed that her employment with the Company will terminate effective June 18, 2007.

Employee will, and hereby does resign effective June 18, 2007, all positions held by Employee within the Company.

The purpose of this Agreement is to provide for certain severance benefits to Employee and in connection therewith settle any and all claims and rights that Employee has or may claim to have against Releasees arising from or relating to Employee’s employment with Company or the Company’s stock or benefit plans.

Contingent Obligations and Rights. The following shall be effective after receipt by the Company of this Agreement fully executed by Employee:

Severance Pay

As consideration for this agreement, Company shall pay Employee severance pay in the total amount of three million dollars ($3,000,000), payable in two equal installments of one million five hundred thousand dollars ($1,500,000) within 5 business days after July 1, 2007 and January 1, 2008.

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A. Employee waives, acquits and forever discharges and releases Releasees as defined in this Agreement from any and all claims, demands, actions, or causes of action, whether known or unknown, arising from or related in any way to any employment or termination of employment or officer or manager positions, or past or future failure or refusal to employ Employee, or any other past or future claim (except as reserved by this Agreement or where expressly prohibited by law) arising from or related to in any way to Employee’s employment, compensation, benefits, stock or stock option grants, incentive compensation, bonuses, reemployment, or application for employment, with the exception of any claim Employee may have against Releasees for enforcement of this Agreement. This release is intended as a general release and includes any and all claims, direct or indirect, which might otherwise be made under any applicable local, state or federal law, including but not limited to, any claim arising under the Oregon or Federal statutes, contracts or common law, including wages, hours or discrimination, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act, the Family and Medical Leave Act of 1993, the Equal Pay Act of 1963, Executive Order 11246, the Rehabilitation Act of 1973, the Vietnam Era Veterans Readjustment Assistance Act, the Fair Labor Standards Act, all as amended, and any regulations under such authorities. As to claims that could be filed with the Equal Employment Opportunity Commission (“EEOC”), Employee acknowledges that if any charges are filed, the Employee waives any claim for damages or for equitable relief. Nothing herein shall be construed to impair employee’s vested interest, if any, in any pension, profit sharing, 401(k) or other similar retirement plan.

B. Release Valid Regardless of Future Discovery of New or Different Facts. Employee acknowledges that they are aware that they or their attorney may discover facts different from or in addition to the facts they now know or believe to be true with respect to the Litigation, with respect to any other claim that is in any way related to Employee’s employment by the Company, the termination of that employment, or claims against the Company, or with respect to the subject matter of this Release, but that it is their intention to and they hereby do fully, finally, absolutely and forever settle any and all claims, disputes and differences that now exist, may exist or have existed between the Employee and the Company. This Release shall operate as a full and complete release notwithstanding the discovery of any different or additional facts.

C. Waiver of Rights to Reinstatement. Employee does hereby waive any and all rights to reinstatement, rights to reemployment, rights to be hired, and rights to be rehired with the Company as may otherwise exist at any time on, before, or after the date Employee signs this Release.

D. ADEA Release. As to the full release of all claims under the Age Discrimination in Employment Act of 1967 (“ADEA”) Employee acknowledges that:

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