Pension Plan Comprehensive SPD July 2021

AMERICAN FAMILY PENSION PLAN

SUMMARY PLAN DESCRIPTION

JULY 2021

This Summary Plan Description is for employees of American Family Mutual Insurance Company, S.I. and its affiliated Companies This revised Summary Plan Description supersedes all previous Summary Plan Descriptions. Although the purpose of this document is to summarize the more significant provisions of the Plan, the Plan document will prevail in the event of any inconsistency. In addition, the terms of the Plan cannot be modified by written or oral statements made to you by the Plan Administrator, Plan Recordkeeper, or other personnel.

SUMMARY PLAN DESCRIPTION--OVERVIEW

WHAT IS IT?..................................................................................................................................................................... 3 WHEN DOES ELIGIBILITY START? ...................................................................................................................................... 3 ASSIGNMENT OF BENEFIT ................................................................................................................................................ 4

ASSIGNMENT OR ALIENATION......................................................................................................................................................... 4 QUALIFIED DOMESTIC RELATIONS ORDER (QDRO) ............................................................................................................................ 4 MANDATORY ROLLOVERS AND LUMP SUM DISTRIBUTIONS ............................................................................................. 5 FEDERAL TAX WITHHOLDING .................................................................................................................................................. 5 SPECIAL TAX RULES FOR LUMP SUM DISTRIBUTIONS ........................................................................................................................... 5 CLAIM PROCEDURE.......................................................................................................................................................... 7 APPEAL PROCEDURES ................................................................................................................................................................... 7 PLAN FUNDING................................................................................................................................................................ 9 TOP-HEAVY PROVISIONS.................................................................................................................................................. 9 NO ENLARGEMENT OF EMPLOYEE RIGHTS ..................................................................................................................... 10 AMENDMENT OR TERMINATION OF THE PLAN............................................................................................................... 10 PLAN ADMINISTRATION................................................................................................................................................. 10 YOUR RIGHTS UNDER ERISA........................................................................................................................................... 11 PENSION BENEFIT GUARANTY CORPORATION................................................................................................................ 12 FOR MORE INFORMATION ............................................................................................................................................. 13 PLAN INFORMATION ..................................................................................................................................................... 13 PARTICIPATION GUIDE................................................................................................................................................... 14 WHICH PLAN BENEFIT COMPONENT SUMMARY(IES) APPLY TO ME?.................................................................................................... 14 PLAN BENEFIT COMPONENT SUMMARIES ....................................................................................................................................... 14 GENERAL RULES......................................................................................................................................................................... 14 TRANSFERS BETWEEN COMPANIES & CHANGES IN EMPLOYMENT STATUS............................................................................................. 14 AMERICAN FAMILY CONNECT EXCEPTION ....................................................................................................................................... 15 SPECIAL NGM PLAN RULES ......................................................................................................................................................... 15 YOU WERE HIRED PRIOR TO 2021 (FOR CERTAIN FORMER/CURRENT NGM EMPLOYEES) ...................................................................... 15 YOU WERE HIRED AFTER 2020 (FOR ALL EMPLOYEES) ..................................................................................................................... 18 PLAN BENEFIT COMPONENT SUMMARY TABLE .............................................................................................................. 19 PLAN BENEFIT COMPONENT #1 SUMMARY .................................................................................................................... 22 PLAN BENEFIT COMPONENT #2 SUMMARY .................................................................................................................... 34 PLAN BENEFIT COMPONENT #3 SUMMARY .................................................................................................................... 48 PLAN BENEFIT COMPONENT #4 SUMMARY .................................................................................................................... 62

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SUMMARY PLAN DESCRIPTION--OVERVIEW

WHAT IS IT?

The American Family Employee Pension Plan (the "Plan") was created by American Family Mutual Insurance Company, S.I. ("American Family Insurance") to provide eligible employees of American Family Insurance and its participating affiliated companies (collectively, the "Company" or "Companies") with a monthly income at retirement. Effective December 31, 2015, the Retirement Plan for District Managers of American Family Mutual Insurance Company (the "District Manager Plan") merged into the Plan. American Family Connect Property and Casualty Insurance Company (formerly known as IDS Property Casualty Insurance Company and referred to in this summary plan description as "Connect") became a participating Company in the Plan on October 1, 2019. Permanent General Companies, Inc. ("PGC") and Homesite Group, Incorporated ("Homesite") became participating Companies in the Plan on July 1, 2020. Beginning on January 1, 2021, the NGM Insurance Company Pension Share Account (the "NGM Plan") merged into the Plan. AFICS, Inc. (formerly American Family Insurance Claims Services, Inc. and referred to herein as "Claims Services") became a participating Company in the Plan on January 1, 2021.

The Plan is a defined benefit pension plan. Pension amounts are determined by a specific formula described in or more of the four "Plan Benefit Component Summaries" included in this Summary Plan Description.

? Plan Benefit Component #1 Summary applies to employees hired by American Family Insurance on or after January 1, 2009 and to employees of Homesite or PGC on or after July 1, 2020, employees hired by NGM Insurance Company ("NGM") after December 31, 2020, and to employees of Claims Services on or after January 1, 2021.

? Plan Benefit Component #2 Summary applies to employees hired by American Family Insurance prior to January 1, 2009 and to former district managers of American Family Insurance who became American Family Insurance employees on or after January 1, 2016 ("District Managers").

? Plan Benefit Component #3 Summary applies to employees who earned a benefit under the District Manager Plan prior to January 1, 2016.

? Plan Benefit Component #4 Summary applies to employees who were eligible for a benefit under the NGM Plan.

The Benefit Component Summary or Summaries that apply to you are outlined in the Plan Benefit Component Summary Participation Guide below.

This Plan is funded entirely by contributions made by the Company. The Company's contributions are actuarially determined.

WHEN DOES ELIGIBILITY START?

You become a participant in the Plan when you reach age 21 and complete 12 months of employment as an eligible employee at American Family.

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SUMMARY PLAN DESCRIPTION--OVERVIEW

Agents and other persons paid by any form other than salary or wages and anyone employed by an agent are not eligible to participate in the Plan. Agents in training and interns are not eligible to participate. Employment as an agent in training or intern on or after that date may still count as Vesting Service but not as Benefit Service.

Your right to a pension will depend on your continued employment by the Company and participation in the Pension Plan

ASSIGNMENT OF BENEFIT

Your pension is only available to you, or under certain circumstances, to your beneficiary; it cannot be used as collateral for loans, or assigned by you, or a beneficiary, in any other way, except as described below.

Assignment or Alienation

A participant's benefit may be reduced to satisfy liabilities of the participant to the plan due to a criminal conviction, civil judgment, consent order or decree or settlement in connection with a violation of the fiduciary provisions of ERISA.

Qualified Domestic Relations Order (QDRO)

This Plan is required to distribute benefits pursuant to a Qualified Domestic Relations Order that may supersede payment of pension benefits to you or your beneficiary.

A Qualified Domestic Relations Order (QDRO) is a domestic relations order which satisfies certain prescribed criteria and which creates or recognizes the existence of the right of a participant's spouse, former spouse, child or other dependent to receive all or part of a participant's accrued benefit in a qualified plan. It relates to child support, alimony payments or marital property rights for your spouse, former spouse, child or other dependent. These orders, decrees, or judgments create an alternate payee's right to benefits under this Plan.

Compliance with a QDRO is an exception to the Employee Retirement Income Security Act's (ERISA) general prohibition against alienation or assignment of accrued benefits in the Pension Plan to persons other than participants or their beneficiaries.

All domestic relations orders should be submitted to:

American Family Benefits Service Center Attention: Qualified Order Center P.O. Box 1433 Lincolnshire, IL 60069-1433

The domestic relations order will be reviewed to determine if it is qualified. Before complying with the terms of the order, you and the alternate payee(s) will be notified if the order meets the Plan requirements.

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SUMMARY PLAN DESCRIPTION--OVERVIEW

MANDATORY ROLLOVERS AND LUMP SUM DISTRIBUTIONS

If the Value of the Actuarial Value of Your Pension Benefit Is Between $1,000 and $5,000 on your termination date

Participants who wish to request a distribution may contact Your Benefits Resources () or (1-877-90-AMFAM).

Your total distribution will be reported on IRS Form 1099R, and will be issued to you in January of the year following your distribution.

If you do not elect a form of distribution within 90 days after the date of termination, in accordance with IRS regulations, an automatic rollover to an Individual Retirement Account (IRA) will occur.

If the Value of Your Pension Benefit Is Less Than $1,000 on your termination date

Participants who wish to request a distribution may contact Your Benefits Resources () or (1-877-90-AMFAM).

If you do not elect a form of distribution within 90 days after the date of termination, the lump sum value of your pension benefit, minus the required federal withholding, will be paid to you in the form of a check. Your total distribution will be reported on IRS Form 1099R in January of the year following your distribution.

If your pension benefit is paid as a mandatory Lump Sum Distribution, it cancels any survivor rights your current or future spouse might otherwise have under the Plan.

FEDERAL TAX WITHHOLDING

The law requires federal income tax to be withheld from pension payments unless you elect otherwise. If you, your surviving spouse or another individual designated as your beneficiary receives a Lump Sum Distribution, special rules apply. See "Special Tax Rules for Lump Sum Distributions", below.

Special Tax Rules for Lump Sum Distributions

? Withholding When a Lump Sum Distribution is paid to an individual, the Plan is required to withhold 20% for federal income taxes unless the payment is directly transferred into an eligible IRA or another employer's qualified retirement plan. (See "Direct Rollovers," below.) Otherwise, you or your beneficiary will only receive 80% of the benefit as a cash payment.

When preparing a federal income tax return for the year the distribution is made, you or your beneficiary must report the full benefit amount (100%) as a taxable payment from the Plan. The 20% withheld for taxes will be credited against any income tax owed for the year.

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