Board of Trustees of the Fire Pension Fund

Regular Meeting

Arlington Heights, IL · February 24, 2025

Minutes

ARLINGTON HEIGHTS FIREFIGHTERS’ PENSION BOARD Minutes of the Regular Meeting held on February 24, 2025 Arlington Heights Fire Department Administrative Headquarters 1150 No. Arlington Heights Road – Arlington Heights IL 60004 Members in Attendance: Adam Sielig Lance Harris Melissa Gallagher Pete Ahlman Absent: Kyle Kaczanowski Others in Attendance: Thomas Radja, Board Attorney CALL TO ORDER Adam Sielig called the meeting to order at 9:01 AM. Roll was called with board members Adam Sielig, Lance Harris, Melissa Gallagher, and Peter Ahlman present. Absent was Kyle Kaczanowski. Also present was Thomas Radja, Board Attorney. APPROVAL OF MINUTES Minutes from the Regular Board Meeting of November 18, 2024 were reviewed for approval. A motion was made and seconded (L. Harris/P. Ahlman) to approve the minutes from the Regular Board meeting on November 18, 2024. All in favor, motion passed. CLOSED SESSION None TREASURER’S REPORT Melissa Gallagher distributed the Financial Report ending December 31, 2024, as well as the Projected Cash Flow report through the end of this 2025 year. Projected Cash Flow Melissa first reviewed page 1, Checking Account. The Projected Cash Flow report is a monthly projection to the end of December 31, 2025, showing projected funds in and out with anticipated ending balance. Most important is the levy projection and the various transfers we’re anticipating throughout the year. The cash out section includes pension payments throughout the year, with ending cash balance. We are a mature fund, thus we anticipate maintaining roughly $100,000 in the account. Naturally these numbers will change during the year, and this will be evident each time we meet. Firefighters’ Pension Board Meeting – February 24, 2025 – Page 1 of 6 Page 2 identifies our account in the Illinois Fund, showing the ending cash balance between Chase Fund and Illinois Fund. Quarterly Financial Report At the top, the Year End balance sheet shows our net assets to be $157,110,267. Although this figure is unaudited, we are currently working with the audit process. In the Revenue and Expenditure section, Melissa drew attention to the YTD Actual column, with Revenues at $22.7 million and Expenditures at $9.4 million. The difference resulted a higher ending balance for the year. Motion was made and seconded (A. Sielig/P. Ahlman) to approve the Treasurer’s Report. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. PAYMENT OF BILLS The Check Register as of year ending 12/31/2024 shows the entire year, and during December there was one check #775 processed in the amount of $873.38 for secretarial services. Motion was made and seconded (A. Sielig/P. Ahlman) to approve check #775 (JV 12-055) in the amount of $873.38 (for past three quarters of the year). Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. REPORTS • Illinois Firefighters Pension Investment Fund (FPIF) Adam Sielig briefly reviewed the December 2024 statement from FPIF, specifically the Arlington Heights pension fund portion, showing a beginning balance in December with a Net Asset Value of $157,424,411, with a rate of return of -2.36%, but a YTD return of 10.92%. The Consolidated Fund report was also provided. OLD BUSINESS • Death of FF Phillip Palczynski – Spousal Survivor Benefits Update Attorney Tom Radja indicated their office is still in the process of gathering records. He recapped the subpoena of twelve different medical offices, plus three IME’s as required by the statute. We are trying to determine whether his death was related to duties as a firefighter. There is some difficulty in getting all the records and Tom spoke with the attorney for Mrs. Palczynski to see if he can assist in getting these records. Recently Tom received medical records from DuPage Medical Group which is the bulk of records from four different doctors. The response contained over 6,000 pages and an invoice for $1,300. Firefighters’ Pension Board Meeting – February 24, 2025 – Page 2 of 6 The higher cost is due to records from four different doctors and individually each would typically be in the $300-$400 range. A question was presented as to how far back will these records go? Tom Radja indicated he asked for any and all records, thus we should have everything they have on file. Although the costs regarding records gathering continues to rise, there’s a significant difference between the survivor benefit of a regular pension versus line of duty disability pension benefit. Our responsibility is to determine which benefit is accurate based on the findings. Will Mrs. Palczynski be required to testify? Tom Radja indicated not necessarily as we rely primarily on the medical records, unless she can present other evidence that’s relevant. Attorney Radja is near to receiving all records he requested, and will keep the Board informed as we get closer to conduct a hearing. • Application for Duty Disability Pension FF Steven Landt – Update Attorney Radja indicated that since the last meeting, FF Landt has now submitted an Application for Retirement Pension benefits. Previously his application was for a Duty Disability Pension. The Board has approved his new application and he is now receiving a retirement pension benefit. The Department of Insurance indicates if you elect to retire while there’s a pending duty disability claim, you then forgo your choice to duty disability benefits. Tom Radja recommends today the Board should present a motion to nullify the Line of Duty Disability Application and a second motion to ratify the Application for Retirement Pension benefit. Motion was made and seconded (A. Sielig/P. Ahlman) to dismiss the application for Line of Duty Disability for applicant FF Steven Landt. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. Motion was made and seconded (A. Sielig/M. Gallagher) to ratify the Application for Retirement Pension for applicant FF Steven Landt, with an effective date of April 30, 2023. The calculation of his monthly pension benefit is $6,780.85. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. NEW BSINESS • Application for Retirement Pension – Deputy Chief Curt Hanselman on 1/17/25 Deputy Chief Curt Hanselman submitted his Application for Retirement Pension as of January 17, 2025. Motion was made and seconded (A. Sielig/P. Ahlman) to approve the Application for Retirement Firefighters’ Pension Board Meeting – February 24, 2025 – Page 3 of 6 Pension for D/C Curt Hanselman, effective January 17, 2025, with a calculated monthly pension benefit of $11,107.49. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. • Application for Retirement Pension – Battalion Chief John Carpenter on 1/31/25 Battalion Chief John Carpenter submitted his Application for Retirement Pension as of January 31, 2025. Motion was made and seconded (A. Sielig/P. Ahlman) to approve the Application for Retirement Pension for B/C John Carpenter, effective January 31, 2025, with a calculated monthly pension benefit of $10,474.81. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. • Death of Sandra Fields (Wife of Deceased Retiree FF John Fields) on 1/13/2025 – Cessation of Benefits The Board received notice that Sandra Fields, widow of deceased retiree, FF John Fields, passed away on January 13, 2025. As of that date, survivor benefits have ceased. Motion was made and seconded (A. Sielig/M. Gallagher) to cease survivor pension benefits to deceased Sandra Fields as of her death on January 13, 2025. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. • Application for Duty Disability Pension - FF/E Thomas Dobbins Attorney Radja indicated that FF Dobbins submitted an Application for Duty Disability Pension as a result of a back injury. On February 10, Tom issued a subpoena for medical records and we are in the process of gathering these records. There is also a workers’ compensation case pending, along with an arbitration regarding additional surgery which may resolve his disability. Chief Harris indicated Tom Dobbins is currently using his sick time and vacation time, so he’s on payroll until April 16. Also, he was recently assessed by an IME (requested by the Village). The IME’s opinion was that the injury is an older, previous injury. Arbitration approved his proceeding with the second surgery. It seems reasonable to send him to three IME’s after the surgery to determine if it resulted in improvement. Attorney Radja agreed, and will check with his attorney as to whether he wants to Firefighters’ Pension Board Meeting – February 24, 2025 – Page 4 of 6 have his application in abeyance until after his surgery. If the surgery is successful, perhaps he wants to return to work or proceed with retirement depending on quality of life. For now, the Board’s primary concern is to continue gathering medical records and determine whether this is a work-related injury. Motion was made and seconded (A. Sielig/P. Ahlman) to acknowledge receipt of the Application for Duty Disability for FF Thomas Dobbins. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. Motion was made and seconded (A. Sielig/M. Gallagher) to appoint Attorney Thomas Radja as the Hearing Officer related to duty disability proceedings for applicant FF Thomas Dobbins. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. • Death of Retired FF Jack Hawn on 2/9/25 – Cessation of Benefits The Board received notification of the death of retired FF Jack Hawn on February 9, 2025. As there are no dependents and no survivor benefit, the pension will cease as of his death. Motion was made and seconded (A. Sielig/P. Ahlman) to cease pension benefits for retired FF Jack Hawn as of February 9, 2025. Roll was called. Ayes: A. Sielig, L. Harris, M. Gallagher, P. Ahlman Nays – 0; Motion carried. • Inquiry from Delores Cappitelli (Wife of Deceased Retiree FF Phil Cappitelli) re Type of Benefit. Kevin Baumgartner received an inquiry regarding the type of survivor benefit Delores Cappitelli is receiving and the tax liability. In checking FF Phil Cappitelli’s pension file, the Decision & Order document and other correspondence indicates he was granted Occupational Disease Disability pension, and upon his death Mrs. Cappitelli received a survivor benefit. Adam Sielig provided the information requested, and explained that she should discuss the matter with her tax advisor. Attorney Radja further emphasized we are not tax professionals and agreed we cannot give her advice regarding the tax liability on the survivor benefit she is receiving. She needs to consult with her tax accountant. OTHER BUSINESS Attorney Radja advised that he received a call from a retiree regarding a Qildro legal document and its impact on the spouse as to benefits received based on his disability. Because Tom represents the pension board, he explained that he cannot provide him with legal advice. Firefighters’ Pension Board Meeting – February 24, 2025 – Page 5 of 6 PUBLIC COMMENTS None. ADJOURNMENT As there was no other business to present before the Board, the meeting was adjourned at 9:46 AM. Motion was made and seconded (A. Sielig/P. Ahlman) to adjourn the meeting. All in favor, motion carried. NEXT REGULAR MEETING – Scheduled for Monday, May 5, at 9:00 AM Respectfully submitted, ______________________ Laura Potts Recording Secretary ______________________ Peter Ahlman Board Secretary Firefighters’ Pension Board Meeting – February 24, 2025 – Page 6 of 6

Agenda

Packet

AGENDA Board of Trustees of the Fire Pension Fund Fire Station #2, 1150 N. Arlington Heights Road February 24, 2025 9:00 AM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. APPROVAL OF MINUTES A. Regular FF Pension Board Meeting November 18, 2024 - Minutes IV. CLOSED SESSION V. TREASURER'S REPORT A. Fire Pension Financial - Q4, 2024 B. Projected Cash Flow by Month - 2025 VI. PAYMENT OF BILLS A. Check Register - Q4, 2024 VII. REPORTS A. FPIF - Arlington Heights Summary December 2024 B. FPIF - Consolidated Fund as of December 2024 VIII. OLD BUSINESS A. Death of FF Phillip Palczynski - Spousal Survivor Benefits Update B. Application for Duty Disability Pension FF Steven Landt - Update IX. NEW BUSINESS A. Application for Retiremet Pension - Deputy Chief Curt Hanselman on 1/17/2025 B. Application for Retirement Pension - B/C John Carpenter on 1/31/2025 C. Death of Sandy Fields (Wife of Deceased FF John Fields) on 1/13/2025 - Cessation of Spousal Benefit D. Application for Duty Disability Pension - FF/E Thomas Dobbins Page 1 of 29 E. Death of Retired FF Jack Hawn on 2/9/2025 - Cessation of Benefits F. Delores Cappitelli inquiry re Spousal Benefit (deceased FF Phil Cappitelli) - Type of Benefit for Tax Purposes X. OTHER BUSINESS A. Announcements / Correspondence XI. PUBLIC COMMENT Anyone wishing to speak on a subject not on the Agenda may speak at this time. Please limit your comments to three minutes. XII. ADJOURNMENT Persons with disabilities requiring auxiliary aids or services, such as an American Sign Language interpreter or written materials in accessible formats, should contact the Health & Human Services Department, at 33 S. Arlington Heights Road, Arlington Heights, IL 60005, healthmail@vah.com or 847/368-5760. Page 2 of 29 ARLINGTON HEIGHTS FIREFIGHTERS’ PENSION BOARD Minutes of the Regular Meeting held on November 18, 2024 Arlington Heights Fire Department Administrative Headquarters 1150 No. Arlington Heights Road – Arlington Heights IL 60004 Members in Attendance: Adam Sielig Lance Harris Thomas Kuehne Pete Ahlman Kyle Kaczanowski Others in Attendance: Thomas Radja, Board Attorney (Collins, Radja & Hartwell) CALL TO ORDER Adam Sielig called the meeting to order at 9:00 AM. Roll was called with board members Adam Sielig, Lance Harris, Thomas Kuehne, Peter Ahlman and Kyle Kaczanowski present. Also present was Thomas Radja, Board Attorney. APPROVAL OF MINUTES Minutes from the Regular Board Meeting of August 12, 2024 were reviewed for approval. A motion was made and seconded (A. Sielig/L. Harris) to approve the minutes from the Regular Board meeting. All in favor, motion passed. CLOSED SESSION None TREASURER’S REPORT Tom Kuehne distributed the Financial Report ending September 30, 2024, the Projected Cash Flow report to the end of the year, and the Fire Pension Fund Proposed 2025 Budget. Projected Cash Flow The Cash Flow Report showed $1 million transfer from the Illinois Fund into the checking account as needed to help pay for expenses. We are scheduling another $1 million transfer in December. We are now a mature fund, on a maintenance basis at this time. Being close to the end of the year, we will keep everyone apprised. Fire Pension Fund - Proposed 2025 Budget Discussing the Fire Pension Budget, Tom Kuehne first reviewed items on the second page (#301). Looking at the Funded Ratio of 83.24%, in 2022 we had approximately a 15% loss in our investments Firefighters’ Pension Board Meeting – November 18, 2024 – Page 1 of 4 Page 3 of 29 and when you include the assumed rate return of 6.75%, we were down by 20%. The Actuary then does a three year smoothing of that loss, with 2023 being the first year, and we are now in the second year. With the next tax levy, the property taxes are going up. Tom next reviewed the third page (#303) Revenue & Expenditures and he referred to two highlights: First, the Pension contribution from real estate taxes showing a large increase of $825,000, combined to $1.2 million. This can be tempered somewhat because we are doing very well this year. This is what the Actuary recommended and the Village Board approved their recommendation. Second, is under Expenses (Pension), also showing an increase due to anticipation of a few additional retirements. Everything else in the Fire Pension Fund is straightforward as expected. Adam Sielig indicated there is $1,000 earmarked for Training. Since each Board member is required to attend annual training at an average cost of $500, it would be reasonable to increase that amount to provide funds for four Board members at $500 each. It was agreed that the Training figure should be increased to $2,000 next year. Tom Kuehne will make that adjustment. Motion was made and seconded (T. Kuehne/P. Ahlman) to approve the Fire Pension Fund 2025 Budget. Roll was called. Ayes: A. Sielig, L. Harris, T. Kuehne, P. Ahlman, K. Kaczanowski Nays – 0; Motion carried. Q3 2024 Financial Report The September Financial Report indicates our total net assets is now $162.3 million so we are doing quite well on income and we are hoping that will offset some of smoothing loss. December 31 is the measurement date. PAYMENT OF BILLS The Check Register was reviewed and Tom Kuehne asked for approval of check #771 (journal voucher 09-063) through check #774 (journal voucher 11-128). Motion was made and seconded (T. Kuehne/A. Sielig) to approve check #771 (JV 09-063) to check #774 (JV 11-128). Roll was called. Ayes: L. Harris, T. Kuehne, A. Sielig, P. Ahlman, K. Kaczanowski Nays – 0; Motion carried. REPORTS • Illinois Firefighters Pension Investment Fund (FPIF) Adam Sielig distributed both the September 2024 statement from FPIF, specifically the Arlington Heights pension fund portion with a YTD Net Asset Value of $157,126,873, at a YTD return of 13.38%. The Consolidated Fund report was also provided. Firefighters’ Pension Board Meeting – November 18, 2024 – Page 2 of 4 Page 4 of 29 OLD BUSINESS • Death of FF Phillip Palczynski – Spousal Survivor Benefits Update Attorney Radja had previously subpoenaed twelve different medical facilities and indicated there is some difficulty in getting all the records. We are still in the gathering phase and once we get all the records for review, we can determine a Hearing date. He will contact the applicant’s attorney to assist in getting the additional records needed. • Application for Duty Disability Pension FF Steven Landt – Update Attorney Radja is working with the new attorney for Steven Landt in trying to set a date for a Disability Hearing. After discussion, it was agreed December 5 to be the most likely date. Tom Radja will notify the Landt attorney of the date and arrange for a Notice of Disability Hearing. He will then send Board members a Dropbox link, containing documents and exhibits for their review. NEW BUSINESS • Death of Retired FF/Captain Jerry Leligdon on September 4, 2024 The Board received notification of the death of retired FF Jerry Leligdon on September 4, 2024. His wife, Anne, is entitled to a spousal benefit in the amount of $7,288.61. Motion was made and seconded ((T. Kuehne/L. Harris) to approve survivor benefits to his spouse, Anne Leligdon, in the amount of $7,288.61 monthly. Roll was called. Ayes: L. Harris, T. Kuehne, A. Sielig, P. Ahlman, K. Kaczanowski Nays – 0; Motion carried. • Closed Executive Session – Release of Minutes Motion was made and seconded (A. Sielig/P. Ahlman) to Executive Session minutes as confidential. All in favor, motion carried. • Approval of IPPFA Invoice of $825.00 for 2025 Membership The Board received an invoice from the Illinois Public Pension Fund Assn. for the 2025 membership year. Motion was made and seconded (A. Sielig/K. Kaczanowski) to approve payment of $825.00 invoice for 2025 membership. Roll was called. Ayes: L. Harris, T. Kuehne, A. Sielig, P. Ahlman, K. Kaczanowski Nays – 0; Motion carried. Firefighters’ Pension Board Meeting – November 18, 2024 – Page 3 of 4 Page 5 of 29 OHER BUSINESS Tom Kuehne advised that he will be retiring soon and the Village is now starting interviewing for his replacement. Once we have a new employee as Finance Director, likely this person will be named as Trustee on the FF Pension Board. If there is a delay, Mary Ellen Juarez will attend until the position is finalized. PUBLIC COMMENTS None. ADJOURNMENT As there was no other business to present before the Board, the meeting was adjourned at 9:26 AM. NEXT REGULAR MEETING – Scheduled for Monday, February 24, at 9:00 AM Respectfully submitted, ______________________ Laura Potts Recording Secretary ______________________ Peter Ahlman Board Secretary Firefighters’ Pension Board Meeting – November 18, 2024 – Page 4 of 4 Page 6 of 29 CY 2024 BALANCE SHEET December 31, 2024 FIREFIGHTERS' PENSION FUND (unaudited) Arlington Heights YTD Firefighters' Pension Fund ASSETS ACTUAL December 2024 Financial Report Cash and Investments Cash and Equivalents 401,247 Pension Investments 153,713,896 Illinois Funds 2,921,902 157,037,045 Receivables Accrued Interest 0 Other 0 Due From Other Funds 73,421 TOTAL ASSETS 157,110,466 LIABILITIES Accounts Payable 0 Deferred Portability Payment 0 Due To Other Funds 198 TOTAL LIABILITIES 198 NET ASSETS 157,110,267 BUDGET COMPARISON REPORT CALENDAR YEAR 2024 December 31, 2024 FIREFIGHTERS' PENSION FUND 100% of the Calendar Year (unaudited) 2024 MTD MTD YTD YTD UNREALIZED PERCENT REVENUES BUDGET BUDGET ACTUAL BUDGET ACTUAL DOLLARS RECEIVED Interest on Investments 900,000 75,000 179,647 900,000 2,196,872 (1,296,872) 244% Market Value Adjustments 2,000,000 166,667 (3,959,818) 2,000,000 12,411,686 (10,411,686) 621% Dividend Income 500,000 41,667 98,449 500,000 904,409 (404,409) 181% Contributions - Participants 1,210,000 100,833 6,572 1,210,000 1,284,080 (74,080) 106% Contributions - R/E Tax 5,881,000 0 73,421 5,881,000 5,881,000 0 100% Other Income 0 0 8,893 0 16,949 (16,949) N/A TOTAL 10,491,000 384,167 (3,592,836) 10,491,000 22,694,997 (12,203,997) 216% 2024 MTD MTD YTD YTD AVAILABLE PERCENT EXPENDITURES BUDGET BUDGET ACTUAL BUDGET ACTUAL DOLLARS SPENT Service Pensions 6,233,300 519,670 626,086 6,233,300 6,144,889 88,411 99% Non-Duty Disability Pensions 197,300 16,449 7,451 197,300 89,408 107,892 45% Duty Disability Pensions 1,243,400 103,662 99,463 1,243,400 1,193,561 49,839 96% Surviving Spouse Pensions 1,123,900 93,700 125,762 1,123,900 1,392,879 (268,979) 124% Occupational Disease Pensions 215,200 17,941 26,919 215,200 323,024 (107,824) 150% Legal Services 50,000 4,169 0 50,000 12,427 37,573 25% Investment Manager Services 120,000 10,004 30,334 120,000 182,951 (62,951) 152% Examinations 10,000 834 0 10,000 4,350 5,650 44% Other Services 9,700 809 1,033 9,700 6,682 3,018 69% Dues 1,300 108 0 1,300 825 475 63% Training 1,000 83 0 1,000 3,000 (2,000) 300% Postage 300 25 39 300 39 261 13% Publications/Periodicals 100 8 0 100 0 100 0% Office Supplies & Equip 100 8 0 100 0 100 0% Pension Refunds 25,000 2,084 0 25,000 7,584 17,416 30% TOTAL 9,230,600 769,555 917,086 9,230,600 9,361,618 (131,018) 101% REVENUE OVER (UNDER) EXPENDITURES 1,260,400 (385,388) (4,509,922) 1,260,400 13,333,378 (12,072,978) 1058% BEG. FUND BALANCE 143,776,889 143,776,889 ENDING FUND BALANCE 145,037,289 157,110,267 Page 7 of 29 Page 8 of 29 Page 9 of 29 FIREFIGHTERS' PENSION FUND CALENDAR YEAR ENDING 12 / 31 / 2024 CHECK REGISTER AND JOURNAL VOUCHER PAYMENTS Check JV or Group MONTHLY Number Number Date Payee Description Expense TOTAL 757 12-051,01-137 01/31/24 Radja Collins Law LLC Legal Services 1,987.50 758 12-051 01/31/24 ExamWorks Medical Exams 5,050.00 759 13-393 01/31/24 ExamWorks Medical Exams 3,050.00 760 01-137 01/31/24 1099 Pro LLC 1099 Services 125.66 761 01-137 01/31/24 ExamWorks Medical Exams 4,350.00 W/T 01-137 01/31/24 Village of Arlington Heights Reimbursement for 1099 Pro 149.50 14,712.66 762 03-017 03/31/24 Radja Collins Law LLC Legal Services 3,612.50 3,612.50 763 VOID VOID 0.00 764 04-207 04/30/24 1099 Pro LLC 1099 Services 45.00 765 04-207 04/30/24 IPPFA Training 1,190.00 1,235.00 766 VOID VOID 0.00 767 05-046 05/01/24 Bryan Gronset Pension Refund 6,067.34 W/T 05-046 05/01/24 IRS 20% Mandatory WH for Pension Ref 1,516.83 768 05-332 05/31/24 Radja Collins Law LLC Legal Services 4,375.00 769 05-332 05/31/24 Adam Sielig Travel Reimbursement 619.75 12,578.92 770 07-049 07/31/24 Radja Collins Law LLC Legal Services 1,945.97 1,945.97 771 09-063 09/30/24 IPPFA Training Conference Registration 595.00 772 09-063 09/30/24 Radja Collins Law LLC Legal Services 1,443.75 773 09-063 09/30/24 Peter Ahlman Training Conference Registration 595.00 2,633.75 774 11-128 11/30/24 IPPFA Dues 825.00 825.00 775 12-055 12/31/24 Laura Potts Secretarial Services 873.38 873.38 38,417.18 Page 10 of 29 Arlington Heights Firefighters Pension Fund Statement of Results Illinois Firefighters Pension Investment Fund Currency: USD ($) December 2024 2024 YTD Beginning NAVs: Beginning NAV 157,424,411.43 138,584,922.21 Contributions - - Withdrawals - - Net Time Weighted Activity - Allocation Balance 157,424,411.43 Allocation Percent 1.62% Income & Expenses: Unrealized Gain/Loss -3,829,245.12 11,499,433.88 Realized Gain/Loss -130,573.22 912,252.49 Dividend Income 98,448.52 904,408.50 Interest Income 179,647.18 1,991,830.15 Derivative Income 94.11 3,333.91 Private Markets (P.E./R.E./P.C./I.N.F) Income Earned 1,446.81 706.58 Income Adjustments for the period Other Income - -40.58 Total Income -3,680,181.72 15,311,924.93 Administrator Expenses (FPIF) - 41,371.90 Other Fee & Expenses (FPIF) 6,866.50 41,921.83 Other Expenses 696.12 7,642.91 Swap Fees 105.16 379.59 Private Markets (P.E./R.E./P.C./I.N.F) Fees 7,171.71 32,161.34 Management Fee 15,494.35 59,473.70 Total Fee & Expenses 30,333.84 182,951.27 Net Income -3,710,515.56 15,128,973.66 Ending NAVs: Ending NAV 153,713,895.87 153,713,895.87 Rate of Returns: Return on Invested Capital -2.36% 10.92% Return on Total Assets -2.36% 10.92% Ownership 1.62% Disclaimer / Important Information: The Plan Total reflects the total of underlying plan balances, and may not be equal to the sum of displayed columns. Although this report has been prepared using information believed to be reliable, it may contain information provided by third parties or derived from third party information, and/or information that may have been obtained from, categorized or otherwise reported based upon client direction. The Northern Trust Company does not guarantee the accuracy, timeliness or completeness of any such information. The information included in this report is intended to assist clients with their financial reporting needs, but you must consult with your accountants, auditors and/or legal counsel to ensure your accounting and financial reporting complies with applicable laws, regulations and accounting guidance. The Northern Trust Company and its affiliates shall have no responsibility for the consequences of investment decisions made in reliance on information contained in this report. NTAC:3NS-20 Page 11 of 29 Illinois Firefighters' Pension Investment Fund Monthly Summary December 31, 2024 Preliminary, subject to change Page 12 of 29 Illinois Firefighters' Pension Investment Fund Executive Summary As of December 31, 2024 18.0 13.2 12.9 12.0 11.0 10.5 6.7 Return 6.0 4.2 4.2 3.8 3.8 2.7 2.6 0.0 -2.3 -2.3 -2.2 -2.2 -6.0 -12.0 1 3 FYTD 1 2 3 5 Inception Month Months Year Years Years Years 10/1/21 Total Fund Composite IFPIF Policy Benchmark Total Fund Composite vs. Target Allocation Mo Current Balance Portfolio Policy (%) Total Equity Composite 0.0% Total Fund Composite 9,495,594,016 100.0 100.0 -2.2 Total Fund Composite excl. Member Funds 9,495,580,534 100.0 100.0 -2.2 Total Fixed Income Composite -1.7 % Total Equity Composite 6,170,973,145 65.0 65.0 -1.9 Total Fixed Income Composite 2,682,945,325 28.3 30.0 -3.0 Total Alternatives Composite 0.6% Total Alternatives Composite 534,160,577 5.6 5.0 -0.9 Cash Composite 107,492,394 1.1 0.0 1.2 Cash Composite 1.1% -3.0 % 0.0% 3.0% Difference Policy targets are based on Interim Asset Allocation. 2 Page 13 of 29 Illinois Firefighters' Pension Investment Fund Portfolio Allocation Month Ending December 31, 2024 1 Mo Asset Class Market Value ($) Portfolio (%) Policy (%) (%) Total Fund Composite 9,495,594,016 100.0 100.0 -2.3 Total Fund Composite excl. Member Funds 9,495,580,534 100.0 100.0 -2.3 Total Equity Composite 6,170,973,145 65.0 65.0 -2.7 U.S. Equity Composite 3,603,788,199 38.0 36.0 -3.2 Rhumbline Russell 200 Large-Cap Core 2,578,501,115 27.2 25.0 -1.5 Rhumbline Russell Midcap Mid-Cap Core 843,809,230 8.9 9.0 -7.0 Rhumbline S&P 600 Small-Cap Core 181,477,854 1.9 2.0 -7.9 Non-U.S. Equity Composite 2,567,184,945 27.0 29.0 -1.9 International Developed Equity Composite 1,654,372,590 17.4 19.0 -2.7 SSGA World ex US Non-U.S. Large-Cap Core 1,392,651,384 14.7 16.0 -2.7 SSGA World ex US Small Non-U.S. Small-Cap Core 261,721,206 2.8 3.0 -2.6 Emerging Markets Equity Composite 912,812,356 9.6 10.0 -0.5 SSGA MSCI EM Emerging Markets 557,167,910 5.9 0.0 -0.2 SSGA MSCI EM ex China Emerging Markets 174,150,880 1.8 8.0 -1.1 SSGA EM Small EM Small-Cap 181,493,566 1.9 2.0 -1.0 Total Fixed Income Composite 2,682,945,325 28.3 30.0 -1.6 Rate Sensitive Composite 2,425,085,738 25.5 27.0 -1.7 Short-Term Treasury Composite 272,479,402 2.9 3.0 0.2 SSGA Short Treasury Short-Term Govt. Fixed Income 272,479,402 2.9 3.0 0.2 Core Fixed Income Composite 2,152,606,336 22.7 24.0 -1.9 Garcia Hamilton & Associates Core Fixed Income 1,063,792,106 11.2 12.0 -2.4 Brown Brothers Harriman & Co Core Plus Fixed Income 1,088,814,230 11.5 12.0 -1.4 Credit Fixed Income Composite 257,859,587 2.7 3.0 -1.2 Emerging Markets Debt Composite 257,859,587 2.7 3.0 -1.2 Macquarie Investment Management EM Fixed Income 125,576,828 1.3 1.5 -1.5 William Blair Investment Management EM Fixed Income 132,282,756 1.4 1.5 -0.8 3 Page 14 of 29 Illinois Firefighters' Pension Investment Fund Portfolio Allocation Month Ending December 31, 2024 1 Mo Asset Class Market Value ($) Portfolio (%) Policy (%) (%) Total Alternatives Composite 534,160,577 5.6 5.0 -2.6 Real Estate Composite 486,318,509 5.1 5.0 -2.8 Private Equity Composite 1,303,036 0.0 0.0 13.2 Private Credit Composite 46,539,032 0.5 0.0 -0.4 Cash Composite 107,492,394 1.1 0.0 0.4 Transition Composite 9,094 0.0 - -50.1 Member Funds Composite 13,482 0.0 - 0.4 Policy targets are based on Interim Asset Allocation. 4 Page 15 of 29 Illinois Firefighters' Pension Investment Fund As of December 31, 2024 Market Value History 12,500.0 10,000.0 9,725.9M 9,495.6M 7,500.0 Millions ($) 5,000.0 2,500.0 1,597.4M 0.0 -2,500.0 10/21 1/22 4/22 7/22 10/22 1/23 4/23 7/23 10/23 1/24 4/24 7/24 10/24 12/24 Market Value Beginning Ending Income % of Contributions Distributions Gain/Loss Income Periods Ending Market Value Market Value %Return Unit Value Beginning $ $ $ $ $ $ Market Value Summary of Cash Flows Oct-2021 - - - - 1,597,393,294.85 - 100.0 - 0.0 1 3 1 2 3 Since Nov-2021 1,597,393,294.85 2,134,158,572.86 FYTD ($) Month ($) Months-1,466,244,426.34 ($) -37,943,015.97 2,227,364,425.40 Year ($) Years ($) -1.7 98.3 ($) Years - Inception 0.0 ($) Dec-2021 2,227,364,425.40 1,713,221,155.65 -1,151,325,334.16 77,095,061.46 2,866,355,308.35 2.8 101.0 - 0.0 Total Fund Composite Beginning Market Value 9,725,896,664 9,689,623,457 8,990,185,270 8,410,260,043 7,213,321,713 2,866,355,308 - Jan-2022 2,866,355,308.35 10,079,805,923.72 -6,127,760,095.15 -271,408,285.68 6,546,992,851.24 -4.0 97.0 34.37 0.0 Net Cash Flow -3,182,962 14,263,782 125,861,820 157,009,570 230,568,706 5,741,302,057 8,522,176,427 Feb-2022 6,546,992,851.24 2,705,002,387.70 -2,319,714,302.79 -129,853,960.57 6,802,426,975.58 -1.9 95.2 287.46 0.0 Net Investment Change -227,119,685 -208,293,222 379,546,926 928,324,403 2,051,703,598 887,936,651 973,417,589 Mar-2022 6,802,426,975.58 131,797,704.97 -90,636,632.97 48,053,036.13 6,891,641,083.71 0.7 95.8 - 0.0 Ending Market Value 9,495,594,016 9,495,594,016 9,495,594,016 9,495,594,016 9,495,594,016 9,495,594,016 9,495,594,016 Apr-2022 6,891,641,083.71 1,030,419,931.58 -683,563,870.72 -429,276,488.13 6,809,220,656.44 -5.9 90.1 - 0.0 5 Page 16 of 29 Illinois Firefighters' Pension Investment Fund Annualized Performance (Net of Fees) As of December 31, 2024 1 Mo 3 Mo FYTD 1 Yr 2 Yrs 3 Yrs 5 Yrs SI Inception (%) (%) (%) (%) (%) (%) (%) (%) Date Total Fund Composite -2.3 -2.2 4.2 11.0 13.2 2.7 - 3.8 Oct 21 IFPIF Policy Benchmark -2.3 -2.2 4.2 10.5 12.9 2.6 6.7 3.8 IFPIF Actuarial Rate (7.125%) 0.6 1.7 3.5 7.1 7.1 7.1 - 7.1 Total Fund Composite excl. Member Funds -2.3 -2.2 4.2 11.0 13.2 3.2 - 3.4 Nov 21 IFPIF Policy Benchmark -2.3 -2.2 4.2 10.5 12.9 2.6 6.7 2.9 Total Equity Composite -2.7 -1.9 5.0 15.3 18.2 4.8 - 4.9 Nov 21 MSCI AC World IMI Index (Net) -2.7 -1.2 5.5 16.4 18.9 4.9 9.7 5.0 U.S. Equity Composite -3.2 2.5 9.0 23.4 24.6 8.0 - 8.4 Nov 21 Russell 3000 Index -3.1 2.6 9.0 23.8 24.9 8.0 13.9 8.4 Rhumbline Russell 200 -1.5 3.4 8.7 27.4 28.6 9.9 - 10.5 Nov 21 Russell Top 200 Index -1.5 3.4 8.7 27.4 28.6 9.9 15.8 10.5 Rhumbline Russell Midcap -7.0 0.6 9.9 15.3 16.2 3.7 - 3.7 Nov 21 Russell Midcap Index -7.0 0.6 9.9 15.3 16.3 3.8 9.9 3.7 Rhumbline S&P 600 -7.9 -0.6 9.5 8.7 12.3 1.9 - 2.5 Nov 21 S&P SmallCap 600 Index -8.0 -0.6 9.5 8.7 12.3 1.9 8.4 2.5 Non-U.S. Equity Composite -1.9 -7.5 -0.2 5.3 10.4 0.7 - 0.5 Nov 21 MSCI AC World ex USA IMI (Net) -2.0 -7.6 0.0 5.2 10.3 0.5 4.1 0.3 International Developed Equity Composite -2.7 -7.5 0.1 4.7 10.9 1.6 - 1.4 Nov 21 MSCI World ex U.S. IMI Index (Net) -2.7 -7.5 0.0 4.4 10.6 1.2 4.8 1.1 SSGA World ex US -2.7 -7.4 -0.2 5.0 11.5 2.2 - 2.2 Nov 21 MSCI World ex U.S. (Net) -2.7 -7.4 -0.2 4.7 11.1 1.9 5.1 1.9 SSGA World ex US Small -2.6 -7.8 1.8 2.9 7.9 -2.4 - -2.8 Nov 21 MSCI World ex U.S. Small Cap Index (Net) -2.6 -7.9 1.8 2.8 7.6 -2.8 2.9 -3.1 6 Page 17 of 29 Illinois Firefighters' Pension Investment Fund Annualized Performance (Net of Fees) As of December 31, 2024 1 Mo 3 Mo FYTD 1 Yr 2 Yrs 3 Yrs 5 Yrs SI Inception (%) (%) (%) (%) (%) (%) (%) (%) Date Emerging Markets Equity Composite -0.5 -7.7 -0.8 6.2 9.2 -1.4 - -1.8 Nov 21 MSCI Emerging Markets IMI (Net) -0.3 -7.9 -0.3 7.1 9.4 -1.4 2.5 -1.9 SSGA MSCI EM -0.2 -7.7 -0.2 6.9 8.3 -2.2 - -2.8 Nov 21 MSCI Emerging Markets (Net) -0.1 -8.0 0.0 7.5 8.7 -1.9 1.7 -2.5 SSGA MSCI EM ex China -1.1 - - - - - - -4.3 Nov 24 MSCI Emerging Markets ex China Index (Net) -1.2 -8.1 -4.5 3.6 11.5 0.1 4.4 -4.4 SSGA EM Small -1.0 -7.1 -2.7 4.2 13.4 1.8 - 2.0 Nov 21 MSCI Emerging Markets Small Cap (Net) -1.0 -7.2 -2.1 4.8 14.0 2.1 8.6 2.4 Total Fixed Income Composite -1.6 -3.0 2.3 2.7 4.6 -1.2 - -1.1 Nov 21 Blmbg. U.S. Universal Index -1.5 -2.7 2.3 2.0 4.1 -2.0 0.1 -1.8 Rate Sensitive Composite -1.7 -3.1 2.2 2.4 4.2 -1.2 - -1.1 Nov 21 Blmbg. U.S. Aggregate Index -1.6 -3.1 2.0 1.3 3.4 -2.4 -0.3 -2.3 Short-Term Treasury Composite 0.2 -0.1 2.8 4.1 - - - 3.9 Apr 23 Blmbg. U.S. Treasury: 1-3 Year 0.2 -0.1 2.8 4.0 4.2 1.4 1.4 3.8 SSGA Short Treasury 0.2 -0.1 2.8 4.1 - - - 3.9 Apr 23 Blmbg. U.S. Treasury: 1-3 Year 0.2 -0.1 2.8 4.0 4.2 1.4 1.4 3.8 Core Fixed Income Composite -1.9 -3.5 2.1 2.2 4.1 -1.7 - -1.5 Nov 21 Blmbg. U.S. Aggregate Index -1.6 -3.1 2.0 1.3 3.4 -2.4 -0.3 -2.3 Garcia Hamilton & Associates -2.4 -4.6 1.5 0.2 - - - 0.8 Apr 23 Blmbg. U.S. Aggregate Index -1.6 -3.1 2.0 1.3 3.4 -2.4 -0.3 2.1 Brown Brothers Harriman & Co -1.4 -2.3 2.7 4.2 - - - 5.4 Apr 23 Blmbg. U.S. Aggregate Index -1.6 -3.1 2.0 1.3 3.4 -2.4 -0.3 2.1 7 Page 18 of 29 Illinois Firefighters' Pension Investment Fund Annualized Performance (Net of Fees) As of December 31, 2024 1 Mo 3 Mo FYTD 1 Yr 2 Yrs 3 Yrs 5 Yrs SI Inception (%) (%) (%) (%) (%) (%) (%) (%) Date Credit Fixed Income Composite -1.2 -2.2 3.4 5.5 8.1 -1.0 - -1.1 Nov 21 JPM EMBI Global Diversified -1.4 -1.9 4.1 6.5 8.8 -0.9 0.1 -1.0 Emerging Markets Debt Composite -1.2 -2.2 3.4 5.5 8.1 -1.0 - -1.1 Nov 21 JPM EMBI Global Diversified -1.4 -1.9 4.1 6.5 8.8 -0.9 0.1 -1.0 Macquarie Investment Management -1.5 -3.5 1.6 - - - - 2.1 Jun 24 JPM EMBI Global Diversified -1.4 -1.9 4.1 6.5 8.8 -0.9 0.1 4.7 William Blair Investment Management -0.8 -1.1 5.4 - - - - 6.5 Jun 24 JPM EMBI Global Diversified -1.4 -1.9 4.1 6.5 8.8 -0.9 0.1 4.7 Total Alternatives Composite -2.6 -0.9 6.0 4.3 1.3 -1.2 - 1.1 Oct 21 Real Estate Composite -2.8 -1.6 5.5 3.8 1.0 -1.3 - 1.0 Oct 21 Real Estate Custom Benchmark -2.4 -1.9 4.2 2.3 -0.2 -2.2 3.7 1.2 Private Equity Composite - - - - - - - - Jun 24 Private Credit Composite - - - - - - - - Jul 24 8 Page 19 of 29 Illinois Firefighters' Pension Investment Fund Public Markets Fee Schedule As of December 31, 2024 9 Page 20 of 29 Illinois Firefighters' Pension Investment Fund Benchmark Composition As of December 31, 2024 Benchmark Weight (%) Benchmark Weight (%) IFPIF Policy Benchmark : Apr-2023 Real Estate Custom Benchmark : Jan-1978 FTSE NAREIT Equity REIT Index 2.00 FTSE NAREIT Equity REIT Index 40.00 Russell Midcap Index 9.00 NFI-ODCE Equal Weighted 60.00 S&P SmallCap 600 Index 2.00 Blmbg. U.S. Aggregate Index 24.00 MSCI World ex U.S. (Net) 16.00 MSCI World ex U.S. Small Cap Index (Net) 3.00 MSCI Emerging Markets Small Cap (Net) 2.00 Russell Top 200 Index 25.00 MSCI Emerging Markets (Net) 8.00 JPM EMBI Global Diversified 3.00 Blmbg. U.S. Treasury: 1-3 Year 3.00 NFI-ODCE Equal Weighted 3.00 10 Page 21 of 29 Illinois Firefighters' Pension Investment Fund Performance Disclosures As of December 31, 2024 Inception Performance Total Fund Composite inception performance is based on an October 1, 2021 start. All other account and composite inception performance is based on an October 31, 2021 start. NFI-ODCE Equal Weighted Quarterly index. Value of the quarterly return is recognized in the last month of each quarter Alternatives Composite The Private Equity and Private Credit composites are valued quarterly. The performance shown is lagged and based on the most recent quarter-end valuation. 11 Page 22 of 29 DISCLOSURES Marquette Associates, Inc. (“Marquette”) has prepared this document for the exclusive use by the client or third party for which it was prepared. The information herein was obtained from various sources, including but not limited to third party investment managers, the client's custodian(s) accounting statements, commercially available databases, and other economic and financial market data sources. The sources of information used in this document are believed to be reliable. Marquette has not independently verified all of the information in this document and its accuracy cannot be guaranteed. Marquette accepts no liability for any direct or consequential losses arising from its use. The information provided herein is as of the date appearing in this material only and is subject to change without prior notice. Thus, all such information is subject to independent verification, and we urge clients to compare the information set forth in this statement with the statements you receive directly from the custodian in order to ensure accuracy of all account information. Past performance does not guarantee future results and investing involves risk of loss. No graph, chart, or formula can, in and of itself, be used to determine which securities or investments to buy or sell. Account and Composite characteristics data is derived from underlying holdings uploaded to the Investment Metrics Platform (“Platform”); the Platform then uses data for the noted time period from Standard & Poor’s (equity holdings) and ICE (fixed income holdings) to populate the reporting templates. Some securities, including cash equivalents, may not be accurately classified during this population process due to missing identifiers or unavailable data. As a result, characteristics in this report may differ from other data sources. For example, Bloomberg indices may include additional rating information which may differ from the S&P rating used by the Platform. Forward‐looking statements, including without limitation any statement or prediction about a future event contained in this presentation, are based on a variety of estimates and assumptions by Marquette, including, but not limited to, estimates of future operating results, the value of assets and market conditions. These estimates and assumptions, including the risk assessments and projections referenced, are inherently uncertain and are subject to numerous business, industry, market, regulatory, geo‐political, competitive, and financial risks that are outside of Marquette’s control. There can be no assurance that the assumptions made in connection with any forward‐looking statement will prove accurate, and actual results may differ materially. The inclusion of any forward‐looking statement herein should not be regarded as an indication that Marquette considers forward‐looking statements to be a reliable prediction of future events. The views contained herein are those of Marquette and should not be taken as financial advice or a recommendation to buy or sell any security. Any forecasts, figures, opinions or investment techniques and strategies described are intended for informational purposes only. They are based on certain assumptions and current market conditions, and although accurate at the time of writing, are subject to change without prior notice. Opinions, estimates, projections, and comments on financial market trends constitute our judgment and are subject to change without notice. Marquette expressly disclaims all liability in respect to actions taken based on any or all of the information included or referenced in this document. The information is being provided based on the understanding that each recipient has sufficient knowledge and experience to evaluate the merits and risks of investing. Marquette is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Marquette including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request or on our website. 12 Page 23 of 29 Board of Trustees of the Fire Pension Fund 2/24/2025 Item: Application for Retiremet Pension - Deputy Chief Curt Hanselman on 1/17/2025 Department: Fire Item Description: ATTACHMENTS: None Page 24 of 29 Board of Trustees of the Fire Pension Fund 2/24/2025 Item: Application for Retirement Pension - B/C John Carpenter on 1/31/2025 Department: Fire Item Description: ATTACHMENTS: None Page 25 of 29 Board of Trustees of the Fire Pension Fund 2/24/2025 Item: Death of Sandy Fields (Wife of Deceased FF John Fields) on 1/13/2025 - Cessation of Spousal Benefit Department: Fire Item Description: ATTACHMENTS: None Page 26 of 29 Board of Trustees of the Fire Pension Fund 2/24/2025 Item: Application for Duty Disability Pension - FF/E Thomas Dobbins Department: Fire Item Description: ATTACHMENTS: None Page 27 of 29 Board of Trustees of the Fire Pension Fund 2/24/2025 Item: Death of Retired FF Jack Hawn on 2/9/2025 - Cessation of Benefits Department: Fire Item Description: ATTACHMENTS: None Page 28 of 29 Board of Trustees of the Fire Pension Fund 2/24/2025 Item: Delores Cappitelli inquiry re Spousal Benefit (deceased FF Phil Cappitelli) - Type of Benefit for Tax Purposes Department: Fire Item Description: ATTACHMENTS: None Page 29 of 29