Board of Trustees of the Police Pension Fund

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, JULY 23, 2025 Secretary Tom Henderson called the meeting to order at 5:30 PM. Roll call was taken with: Board Members Present: Tom Henderson, Secretary Bill Falk, Assistant Secretary Harry Malone, Trustee Board Members Absent: Petar Milutinovic, President Steven Klopack, Vice President Also Present: Jeff Goodloe, Pension Board Attorney, Mary Ellen Juarez, Assistant Director, Finance PUBLIC COMMENT Keith Moens, asked again if the meeting minutes could be hyperlinked to the Agenda on the Village’s website, which Mr. Henderson advised he would remind everyone about this. APPROVAL OF MINUTES A. April 23, 2025 Mr. Henderson moved, seconded by Mr. Falk, to approve the minutes of the regular board meeting held on April 23, 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 $209,671,583, with the majority of it in the state pension fund. In regards to the cash flow statement, Ms. Juarez advised that she plans on maintaining only $50,000 in the checking account iso that they can take advantage of the higher interest rates in the Illinois Funds Account, which currently has a balance of $6.4 million, Ms. Juarez stated that Finance Director Melissa Gallagher is still not listed as an authorized agent and cannot withdraw money from the State account yet. Once she is authorized agent, they can transfer some money there. Ms. Juarez also stated that the Village has not received any property tax money yet, but is hopeful that will start coming in. Ms. Juarez advised that the Village transferred $600,000 of surplus funds into the pension fund in April and then in June they sent a pension refund to Naperville in the amount of $143,363. 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. Henderson moved, seconded by Mr. Falk, to approve checks #773 through 783. 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 all of the exhibits were finalized, which the Board should already have. The exhibits also got sent out to the counsel for the Village, as well as to Officer Trudeau, at the end of May. Mr. Goodloe advised that the disability hearing will be held sometime between the dates of September 18th and the 23rd, and will let the Board know as soon as a date has been finalized. He will then send a Notice of Hearing, as well as an agenda, that will need to be posted 48 hours before the hearing. B. Status Update – Beneficiary Nicole Grelecki Mr. Goodloe advised that the exhibits stating that Ms. Grelecki has recovered from her disability are all ready, however Mr. Goodloe stated that Ms. Grelecki’s attorney reached out and proposed an agreement to settle this case, which the Village and the Board would have to agree to. Mr. Henderson advised that it is his recollection that Ms. Grelecki was officially terminated for job abandonment and suggested Mr. Goodloe ask Human Resources if this is correct. Mr. Goodloe stated that what could happen is that she comes back to work for 1 ½ years, she will have eight years vested, and then pulls her retirement pension. With those eight years, she would collect 20% of her salary, starting at age 60. Right now, she is receiving 50%, as a non-duty disability pension based upon whatever her salary was when she went out. Mr. Henderson advised that she is currently collecting about $43,000 a year and the pension fund has paid out about $750,000 to her over the years. Mr. Henderson stated that it does add up and they need to be fiduciaries here. Mr. Goodloe advised that the Board could decide to move forward with accepting an agreement and provided a variety of possible scenarios as to how Ms. Grelecki may proceed. The Board could also decide to not accept any type of agreement and go right to a hearing. Mr. Henderson advised that he does not feel it’s appropriate to make a decision right now without the other Board members present. Mr. Goodloe stated that he will reach out to the Village Attorney to see if they are even interested in entertaining this idea, and if not, they will just go right to a hearing. If they are interested that could hold a special Board meeting to discuss this. Mr. Falk suggested that the deal is more with the Village than the Board. Mr. Malone asked if there was a way to get out of this without paying Ms. Grelecki any additional money. Mr. Goodloe advised the best result would be holding a hearing, terminating the pension, and then her not suing and going away. Things are currently sitting with the Village Attorney and there will ultimately be three parties to the agreement. Mr. Malone asked if it matters if she was terminated and didn’t voluntarily leave, which Mr. Goodloe stated that he doesn’t know the answer to that. Mr. Henderson advised that they will defer this discussion to the next meeting for the full Board to decide on Counsel’s suggestion/advice on a potential deal with Ms. Grelecki. NEW BUSINESS -2-  A. Review/Approve Actuarial Valuation and Tax Levy Request Ms. Juarez asked if the Board received the Actuarial report, which they indicated they did not. Ms. Juarez advised that she will send it to them and explained how they do the actuarial report to get the tax levy where it needs to be sure that they are funding the pension fund appropriately. They always do what the actuary determines, which is more than what is state mandated. The tax levy will be $5,284,733, and levied in December to be collected throughout the year in 2026. Mr. Malone stated that he wants it to be clear that the Board is accepting the Actuarial report and the recommend contribution from the Village, as there are two different numbers. Mr. Falk stated that looking at their current assets, they are 90% funded, which is phenomenal. Mr. Falk moved, seconded by Mr. Henderson, to accept the Actuarial Valuation report and request a recommend levy of $5,284, 733. Roll Call was taken. The motion passed unanimously. B. Review/Approve Municipal Compliance Report Mr. Goodloe advised that this is a report that needs to get approved, probably at the next meeting, and provide it to the Village prior to the tax levy, which takes place in December. Mr. Henderson stated this item will be deferred to the October meeting. C. 2025 IPPFA MidAmerican Pension Conference – October 1 – October 2, 2025 Mr. Henderson advised that it would only be Mr. Falk and Mr. Malone who would need to go to this conference and asked if they will be going, which they both advised they will not be going. D. Ratify transfer of creditable service time for Kenneth Ruff to the Naperville Police Pension Fund - $143,362.78 (May 23, 2025) Mr. Henderson moved, seconded by Mr. Falk, to approve the transfer of service time for Officer Kenneth Ruff to the Naperville Police Department, in the amount of $143,362.78. Roll Call was taken. The motion passed unanimously. E. Retirement – Approval of Decision and Order for Officer Michael Butler, June 4, 2025 Mr. Henderson moved, seconded by Mr. Malone, to approve the Decision and Order for Officer Michael Butler. Officer Butler retired on June 4, 2025. Roll Call was taken. The motion passed unanimously. F. Retirement – Approval of Decision and Order for Sergeant Russ Mandel, June 23, 2025 Mr. Henderson moved, seconded by Mr. Malone to approve the Decision and Order for Sergeant Russ Mandel. Sergeant Mandel retired on June 23, 2025. Roll Call was taken. The motion passed unanimously. G. Resignation – Probationary Police Officer Zachary Hicks, July 4, 2025 Mr. Henderson advised that Probationary Police Officer Zackary Hicks resigned on July 4, 2025. H. Resignation – Probationary Police Officer Joseph Tonkovich, July 9, 2025 Mr. Henderson advised that Probationary Police Officer Joseph Tonkovich resigned on July 9, 2025. I. New Hire – Nisa Santana, June 9, 2025, Tier II -3- Mr. Henderson moved, seconded by Mr. Falk to accept Nisa Santana, hired on June 9, 2025, into the pension fund as a Tier II participant. The motion passed unanimously. J. New Hire – Michael Palacios, June 9, 2025, Tier II Mr. Henderson moved, seconded by Mr. Malone, to accept Michael Palacios, hired on June 9, 2025, into the pension fund as a Tier II participant. The motion passed unanimously. K. New Hire – Laiken Lockley, June 9, 2025, Tier II Mr. Henderson moved, seconded by Mr. Malone, to accept Laiken Lockley, hired on June 9, 2025, into the pension fund as a Tier II participant. The motion passed unanimously. 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 Board of Trustees of the Police Pension Fund Community Room, Police Department 200 E. Sigwalt July 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 April 23, 2025 Meeting Minutes 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. Status Update - Beneficiary Nicole Grelecki X. NEW BUSINESS A. Review/Approve Actuarial Valuation and Tax Levy Request B. Review/Approve Municipal Compliance Report C. 2025 IPPFA MidAmerican Pension Conference - October 1 - October 2, 2025 D. Ratify transfer of creditable service time for Kenneth Ruff to the Naperville Police Pension Fund - $143,362.78 (May 23, 2025) E. Retirement - Approval of Decision and Order for Officer Michael Butler, June 4, 2025  F. Retirement - Approval of Decision and Order for Sergeant Russ Mandel, June 23, 2025 G. Resignation - Probationary Police Officer Zachary Hicks, July 4, 2025 H. Resignation - Probationary Police Officer Joseph Tonkovich, July 9, 2025 I. New Hire - Nisa Santana, June 9, 2025, Tier II J. New Hire - Michael Palacios, June 9, 2025, Tier II K. New Hire - Laiken Lockley, June 9, 2025, Tier II 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.