Board of Trustees of the Police Pension Fund

Regular Meeting

Arlington Heights, IL · April 23, 2025

Minutes

MINUTES OF THE REGULAR MEETING OF THE ARLINGTON HEIGHTS POLICE PENSION FUND BOARD OF TRUSTEES MULDER COMMUNITY ROOM, POLICE DEPARTMENT 200 E. SIGWALT STREET WEDNESDAY, APRIL 23, 2025 Secretary Tom Henderson called the meeting to order at 5:30 PM. Roll call was taken with: Board Members Present: Petar Milutinovic, President Steven Klopack, Vice President Tom Henderson, Secretary Bill Falk, Assistant Secretary Harry Malone, Trustee Board Members Absent: None Also Present: Jeff Goodloe, Pension Board Attorney, Mary Ellen Juarez, Assistant Director, Finance, Kim Peterson, Recording Secretary APPROVAL OF MINUTES A. January 22, 2025 Mr. Malone moved, seconded by Mr. Mlutinovic, to approve the minutes of the regular board meeting held on January 22, 2025. The motion passed unanimously. TREASURER’S REPORT A. Report from the Village Treasurer Ms. Juarez presented the Police Pension Fund Financial Report and stated that the Fund currently has a balance of almost $197 million, which went down in November but then increased in December. Ms. Juarez advised that since Finance Director Melissa Gallagher had not been added to the account, they were not able to do the automatic draw downs, but with the Board’s approval tonight, she will begin doing the draw downs, moving all but $50,000 to IPOPIF. The cash flow shows the $5 million the Fund received from what was left over in investments after Dave Wall initiated all of the transfers, which was then moved to the Illinois Funds Account. Ms. Juarez advised that she projected out the remainder of the year indicating the transfers out and the transfers in, which will be a little confusing until everyone gets used to it. Property taxes were received, which will be moved over to IPOPIF and in April, $600,000 was received by the Village, following their surplus allocations from the General Fund. Mr. Milutinovic asked if the withdrawals from IPOPIF will go directly into the Illinois Funds Account, which Ms. Juarez stated that once they start receiving withdrawals from IPOPIF, the money will go directly into the checking account and they will close the Illinois Funds Account. Ms. Juarez explained how they will transfer in about $900,000 from IPOPIF every month for benefit payments and administrative costs and always keep about $50,000 in the checking account. Mr. Henderson moved, seconded by Mr. Malone to accept the Treasurer’s Report. The motion passed unanimously. PAYMENT OF BILLS -1- B. Approval of the Check Register Mr. Milutinovic moved, seconded by Mr. Falk, to approve checks #767 through 772, as well as 774 for Kim Peterson’s secretarial services. Roll Call was taken. The motion passed unanimously. REPORTS A. IPOPIF Quarterly Statements reviewed by the Pension Board Mr. Henderson stated that the Board has reviewed the monthly statements from IPOPIF. OLD BUSINESS A. Disability Application – status update for Officer Nickolas Trudeau Mr. Goodloe advised that the he has all three independent medical examination reports for Nickolas Trudeau and is in the process of assembling the Pension Board’s exhibits. There are two exhibits that he is still working on, one of which consists of all of the videos (dashcam, body camera) from the incident. Mr. Goodloe explained how these video files are enormous and is working with the Village’s attorneys and the applicant to reduce these files to only relevant material. Mr. Goodloe asked the Board if they want to view the videos ahead of time, which Mr. Malone stated that unless there is something super relevant, they can just view them the day of the hearing. Mr. Henderson asked Mr. Goodloe if he anticipates this being a difficult hearing, which Mr. Goodloe stated yes. He advised that there is no dispute about disability and more than likely the Village will convene and grant an interim, non-duty disability without prejudice to the non-duty claim. The parties will likely get together and depose the physicians and then the Board will get those transcripts. Mr. Goodloe advised that he will reach out to the Board as the hearing date nears. B. Annual Physical Examination – Nicole Grelecki Mr. Goodloe advised that he sent the report from Dr. Talerico who came back and said that Ms. Grelecki has recovered from her disability and sent the proposed Board exhibits out today. Ms. Grelecki has hired the same attorney that represented her in 2011, who has some additional documents that he believes are relevant, which Mr. Goodloe will forward to Dr. Talerico for his review and to see if it changes his opinion. If it does, then potentially this goes away, but if it doesn’t, then an evidentiary hearing will be scheduled. Mr. Goodloe asked if the Board has the original signed Decision and Order from when the Pension Board granted the disability, as well as the original disability application, which Mr. Henderson advised it should be in her file and they can send the documents to him. C. Board Resolution Appointing Account Representative Melissa Gallagher Mr. Milutinovic advised that IPOPIF is requesting a Board Resolution appointing Melissa Gallagher, Finance Director, as an account representative on behalf of the Pension Fund. Mr. Goodloe advised that the Board will have to send an ECFM with her information as well, which Mr. Milutinovic stated that it has already been sent. Mr. Milutinovic moved, seconded by Mr. Falk, to approve the resolution establishing Melissa Gallagher and Petar Milutinovic as the account representatives. The motion passed unanimously. D. Certify Board Election Results – Active Member Positions/Retired Member Position -2- Mr. Henderson advised that there were three open positions and all were elected by acclimation. Mr. Henderson moved, seconded by Mr. Milutinovic, to certify the election results. The motion passed unanimously. E. Reappointment of Board Trustee Bill Falk Mr. Henderson advised that Mr. Falk was reappointed to another term. F. IPPFA 2025 Illinois Pension Conference Mr. Henderson advised that he, Mr. Milutinovic and Mr. Klopack will be attending the spring conference in Galena. NEW BUSINESS A. Annual Verification of eligibility of pension beneficiaries Mr. Milutinovic advised that all of the pension beneficiary verification letters have been received. B. Illinois Department of Insurance (IDOI) Compliance Fee Mr. Goodloe advised that after consolidation, the Village will not get a separate compliance fee. C. Illinois Department of Insurance (IDOI) Annual Statement Ms. Juarez advised that they have to report all the current Police Officers annual salaries, all of the retirement benefits and investment information, which will get sent to the Illinois Department of Insurance (IDOI) in June. Mr. Goodloe explained that IDOI has a statutory mandate to regulate all state pension funds. D. Statements of Economic Interest Mr. Milutinovic advised that all Trustees have submitted their statements to the County Clerk. E. Pension fund contribution refund to Jeremy Klimasara ($9,037.54) Mr. Milutinovic advised that Jeremy Klimasara left the Department some time ago and is now requesting a refund of his contributions. Mr. Henderson moved, seconded by Mr. Falk, to approve the refund contribution to Jeremy Klimasara in the amount of $9,037.54. Roll Call vote was taken. The motion passed unanimously. F. New Hire – Officer Andrew Robinson – April 14, 2025 Mr. Henderson moved, seconded by Mr. Klopack, to accept Andrew Robinson into the pension fund as a Tier 2 participant. The motion passed unanimously. G. Notice of Death – John W. Fellman, January 29, 2025 – Surviving Spouse Judy Fellman -3- Mr. Malone moved, seconded by Mr. Klopack, to approve the surviving spouse benefit for Judy Fellman, effective January 30, 2025. The motion passed unanimously. H. Resignation of Officer Michael Miglorisi Mr. Milutinovic advised that Officer Miglorisi resigned on April 15, 2025. OTHER BUSINESS None ADJOURNMENT Mr. Henderson moved, seconded by Mr. Falk to adjourn the meeting at 6:01 PM. The motion passed unanimously. -4-

Agenda

Packet

AGENDA Board of Trustees of the Police Pension Fund Beuchner Room Village Hall, 33 S. Arlington Heights Road Arlington Heights, IL 60005 April 23, 2025 5:30 PM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. 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. IV. APPROVAL OF MINUTES A. Approval of Meeting Minutes - January 22, 2025 V. CLOSED SESSION VI. TREASURER'S REPORT A. Report of the Village Treasurer VII. PAYMENT OF BILLS A. Approval of the Check Register VIII. REPORTS A. IPOPIF Quarterly Statements reviewed by the Pension Board IX. OLD BUSINESS A. Disability Application - status update for Officer Nickolas Trudeau B. Annual Physical Examination - Nicole Grelecki C. Board Resolution Appointing Account Representative Melissa Gallagher D. Certify Board Election Results - Active Member Positions/Retired Member Position E. Reappointment of Board Trustee Bill Falk F. IPPFA 2025 Illinois Pension Conference X. NEW BUSINESS Page 1 of 14 A. Annual Verficaiton of eligibility of pension beneficiaries B. Illinois Department of Insurance (IDOI) Compliance Fee C. IDOA Annual Statement D. Statements of Economic Interest E. Pension fund contribution refund to Jeremy Klimasara ($9,037.54) F. New Hire Andrew Robinson - April 14, 2025 G. Notice of Death - John W. Fellman, January 29, 2025 - Surviving Spouse Judy Fellman H. Resignation of Officer Michael Migliorisi XI. OTHER BUSINESS 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 14 MINUTES OF THE REGULAR MEETING OF THE ARLINGTON HEIGHTS POLICE PENSION FUND BOARD OF TRUSTEES MULDER COMMUNITY ROOM, POLICE DEPARTMENT 200 E. SIGWALT STREET WEDNESDAY, JANUARY 22, 2025 President Petar Milutinovic called the meeting to order at 5:30 PM. Roll call was taken with: Board Members Present: Petar Milutinovic, President Steven Klopack, Vice President Tom Henderson, Secretary Bill Falk, Assistant Secretary Harry Malone, Trustee Board Members Absent: None Also Present: Jeff Goodloe, Pension Board Attorney, Mary Ellen Juarez, Assistant Director, Finance, Kim Peterson, Recording Secretary PUBLIC COMMENTS Keith Moens, Arlington Heights resident, asked if now that all of the assets have been transferred to IPOPIF, did the Board receive a Third Quarter Investment Statement, which Ms. Juarez advised that IPOPIF has not released their December Statement yet. APPROVAL OF MINUTES A. October 23, 2024 Mr. Henderson moved, seconded by Mr. Falk, to approve the minutes of the regular board meeting held on October 23, 2024. The motion passed unanimously. TREASURER’S REPORT A. Report from the Village Treasurer Ms. Juarez advised that the balance on the Cash Flow report is only thru November, as they have not received a December Statement yet. Ms. Juarez stated that they always may be a month behind at the Quarterly Board Meetings, depending on how quickly IPOPIF distributes the Statements. Ms. Juarez advised that at the end of November, the Fund had $201 million and in terms of Cash Flow, the year ended with $556,463. The Village had to subsidize the property taxes that did not come in from Cook County, which totaled $4,190,000. The Illinois Funds Account ended with close to $3 million. Ms. Juarez advised that she spoke with IPOPIF and they only require a seven-day notice to withdraw funds, therefore she thinks as much money as possible should be kept in the Illinois Funds Account, as it gains the most interest there and a balance of about $50,000 should be kept in the Chase Checking Account. Ms. Juarez stated that they can just draw down from the Illinois Funds Account when money is needed to pay for the pensions until it runs out. Ms. Juarez asked if the Board is comfortable with keeping $50,000 in the checking account and if they want to leave a cushion in the Illinois Funds Account or would they rather she transfer the money to IPOPIF and take advantage of the higher interest rates. Since she only needs seven days to initiate the transfer, that is definitely an option. Ms. Juarez advised that she will be watching this fund a lot more -1- Page 3 of 14 now than she did before. Mr. Henderson advised that the Board did discuss keeping a month and a half of benefit payments in one of the accounts so that it is more accessible, as well as keeping the property taxes. Mr. Henderson asked the Board if they want to keep the property taxes or have them sent to the State for investment and just have Ms. Juarez request the money monthly when she needs to make benefit payments. Mr. Malone suggested that it’s better to keep the money invested right up until it’s needed. Ms. Juarez asked how much money do they want to keep in the Illinois Funds Account, as well as the checking account. Mr. Malone stated that he thinks $50,000 should be kept in the checking account and the Illinois Funds Account should only have the minimum amount in it to keep it open. Mr. Goodloe advised that most other Boards are establishing a repeat monthly withdrawal to make benefit payments and setting a minimum target balance in the checking account and sweeping everything else into the consolidated fund and it comes in. Mr. Henderson moved, seconded by Mr. Klopack, to sweep all cash, except for $50,000 in the Chase Checking Account, to IPOPIF. Roll Call was taken. The motion passed unanimously. Mr. Henderson moved, seconded by Mr. Milutinovic, to instruct Assistant Finance Director Mary Ellen Juarez to withdraw from IPOPIF on a monthly basis an amount necessary to make benefit payments and to cover administrative costs. Roll Call was taken. The motion passed unanimously. PAYMENT OF BILLS A. Approval of the Check Register Mr. Henderson moved, seconded by Mr. Falk, to approve checks #760 through 766, and the checks to Kim Peterson and Goodloe and Puchalski. Roll Call was taken. The motion passed unanimously. Mr. Milutinovic advised that Tom Kuehne, the Village’s Finance Director and the Pension Board’s Treasurer, is retiring on January 30th and is being replaced by Melissa Gallagher on February 3rd. Ms. Gallaher will assume all of the permissions as authorized agent with IPOPIF. Ms. Juarez will continue to be an authorized agent as well. Mr. Milutinovic advised that this item will be placed on the next agenda for the Board’s official approval. Ms. Juarez stated that she will update the Chase Checking Account and Illinois Funds Account to reflect this change. REPORTS A. IPOPIF Third Quarter Statements Mr. Henderson advised that Pension Board reviewed the statements, therefore he is not going to go through them. OLD BUSINESS A. Disability Application – status update for Officer Nickolas Trudeau Mr. Goodloe advised that the process slowed down a bit as he worked through some additional records and body camera footage that he received from the Village in response to the subpoena he issued regarding the incident in question. Mr. Goodloe stated that three psychiatrists have been selected to examine Officer Trudeau, so he just need to get the appointment dates confirmed. He expects the appointments will take place within the next few weeks and once he gets those reports back an evidentiary hearing will hopefully get scheduled. B. Operating Account (In-Flow) adjustment to monthly drawdown -2- Page 4 of 14 Mr. Henderson advised this item was already covered. C. Final transfer of assets to IPOPIF Mr. Milutinovic advised he spoke with Dave Wall last week regarding the $5 million left in the US Bank Account. Mr. Wall stated a letter was sent to US Bank instructing them to sweep all of this cash into the IPOPIF consolidated fund. D. Annual Physical Examination – Nicole Grelecki Mr. Goodloe advised that the 2025 physical examination has been set up for Ms. Grelecki and pursuant to the Board’s direction, a different doctor was chosen to examine her, which will take place February 11 th. NEW BUSINESS A. Annual Budget Approval for 2025 Ms. Juarez advised that the property taxes and contributions for 2025 will be $4,427,000. Mr. Falk moved, seconded by Mr. Milutinovic, to approve the annual budget for 2025. The motion passed unanimously. B. Semi-Annual Review of Closed Session Mr. Henderson advised there are no closed session minutes to review. C. Statement of Economic Interest Mr. Milutinovic advised that he filed everyone’s information with the County and they’ll email everyone sometime in March, with a due date of May 1st. D. Approve annual Cost of Living Adjustments (COLA’S) for pensioners Mr. Henderson moved, seconded by Mr. Klopack, to approve the Cost-of-Living Adjustment for retirees commencing January 1st. Roll Call was taken. The motion passed unanimously. E. Review of Trustee term expirations and election procedures Mr. Milutinovic advised that all of the elected Trustees are up for reelection this year. Mr. Milutinovic stated that he will handle the election, which will take place in April. F. New Hire Joseph F. Tonkovic – December 29, 2024 Mr. Milutinovic moved, seconded by Mr. Falk, to accept Joseph F. Tonkovic into the pension fund as a Tier 2 participant. The motion passed unanimously. G. Resignation of Kenneth Ruff – December 12, 2024 Mr. Milutinovic advised that Kenneth Ruff resigned and has transferred to Naperville PD. He has not formally requested repayment of his contributions. -3- Page 5 of 14 OTHER BUSINESS Mr. Milutinovic advised that the Illinois Public Pension Fund Association (IPPFA) spring conference will be held on May 7 – 8 and asked for a motion to approve expenditures. Mr. Malone moved, seconded by Mr. Milutinovic to approve the necessary expenses for those who will be attending the spring conference. Roll Call was taken. The motion passed anonymously. ADJOURNMENT Mr. Henderson moved, seconded by Mr. Malone to adjourn the meeting at 6:19 PM. The motion passed unanimously. -4- Page 6 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: Annual Verficaiton of eligibility of pension beneficiaries Department: Police Item Description: ATTACHMENTS: None Page 7 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: Illinois Department of Insurance (IDOI) Compliance Fee Department: Police Item Description: ATTACHMENTS: None Page 8 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: IDOA Annual Statement Department: Police Item Description: ATTACHMENTS: None Page 9 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: Statements of Economic Interest Department: Police Item Description: ATTACHMENTS: None Page 10 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: Pension fund contribution refund to Jeremy Klimasara ($9,037.54) Department: Police Item Description: ATTACHMENTS: None Page 11 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: New Hire Andrew Robinson - April 14, 2025 Department: Police Item Description: ATTACHMENTS: None Page 12 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: Notice of Death - John W. Fellman, January 29, 2025 - Surviving Spouse Judy Fellman Department: Police Item Description: ATTACHMENTS: None Page 13 of 14 Board of Trustees of the Police Pension Fund 4/23/2025 Item: Resignation of Officer Michael Migliorisi Department: Police Item Description: ATTACHMENTS: None Page 14 of 14