Proprietary 8-22 THE FARMERS AGENCY FORCE DEFERRED COMPENSATION PLAN The Farmers Agency Force Deferred Compensation Plan (the “Plan”) began in June of 2004. It is a savings program that allows agents and district managers to save for their future on a tax-deferred basis. The Plan gives eligible participants an additional way to help meet their financial planning needs. The Plan allows you to: n Save for short-term and long-term goals with pre-tax dollars. n Supplement your other savings programs. n Utilize tax-advantaged investment-crediting options. How the plan works The Plan is completely voluntary. You may contribute as little as 10% to as much as 60% of your Auto new business commissions, 5% to 25% of your Commercial new business commissions, 5% to 25% of your Home new business commissions and/or 10% to 100% of your Annual Growth Bonus (AGB) if you qualify. District managers can defer 10% to 100% of their Quarterly New Business Accelerator Bonus and or 10% to 100% of their Annual Agency Development Bonus. When you do so, you are deferring receipt of this portion of your compensation until a later date that you choose during annual enrollment — as early as three years from the beginning of the Plan year or as late as your contract termination. Once you choose to defer, we will create a bookkeeping account in your name and will pay you your balance according to your distribution elections, subject to the Plan’s distribution rules. Returns and deferrals credited to your account are not subject to income tax until your balance is distributed. Your deferrals are credited to your account on the first business day of each month during the Plan year. For the 2024 Plan year, you defer applicable commissions and/or bonus amounts from the March 2024 folio through the January 2025 folio. Please note: Each Plan year is treated separately and is independent of other Plan years; therefore, each Plan year can have different and unique elections. 27 deferred IMPORTANT NOTE: n C urrent, active 2023 Agency Force Deferred Compensation Plan participants will automatically be enrolled into the 2024 Plan year. n I f you are a current participant and you do not want to participate next year, you must opt out during annual enrollment. n O nce annual enrollment has closed, you may not revoke your elections and must remain in the Plan for the entire Plan year at your current deferral percentage.
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