November 01, 2007

Important Change to 401(k) Plan

The original transition plan to Vanguard for the Kemper Employees’ 401(k) Plan included a provision to replace the Kemper Stable Value Fund with the Vanguard Retirement Savings Trust. The transition period was needed to allow for the maturing or liquidation of group annuity contracts without interest penalties.

With the maturing in November of the final group annuity contract, the Kemper Stable Value Fund will be replaced with the Vanguard Retirement Savings Trust, effective November 29, 2007. Both funds are considered conservative investment vehicles with the same objectives—to preserve the value of the original investment and provide a stable level of interest. Going forward all new funds will be deposited in the Retirement Savings Trust. Vanguard will purchase and manage group annuity contract as part of the total portfolio.

Attached is a fact sheet for the Vanguard Retirement Savings Trust VIII