Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: NOVEMBER 24, 2025 CITY HALL, ROOM 302A TIME: 1:30 P.M. Present: Stan Chubinski, Jake Martin, Chris Rabbitt, Josita Todd, and Tammy Wolfersberger. Also Present: Lily Vardell (Police & Fire Pension Administrator), Aaron Kuhn (Revenue Services Director), Justin Cohen (CAPTRUST-participated virtually), Fire Dept retirees Gordy Vogt and Chuck Asher. Chair Chubinski asked for approval of the agenda. Motion Todd, seconded by Wolfersberger. On a voice vote, motion carried. Presented minutes of the regular meeting from October 21, 2025. Motion Rabbitt, seconded by Todd to approve the regular meeting minutes from October 21, 2025. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports for October: As of 10/31/2025, the market value of the portfolio was $211,887,024.81, a gain of $2,867,805.70 from the 9/30/2025 balance. For the month of October, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Investment Fees Loomis Sayles & Co 37,154.54 Quarterly 7/1/25-9/30/25 Total Investment Fees 37,154.54 Cash Management Fees Loomis 169.96 Monthly 8/31/25-9/30/25 Cash Management Fees Comerica Bank 197.96 Monthly 8/31/25-9/30/25 7/1/25-9/30/25 & 10/1/25- Consulting Services CAPTRUST 47,500.00 Quarterly 12/31/25 Administrative Fee Comerica Bank 12,287.13 Quarterly 6/30/25-9/30/25 Administrative Fee Loomis 2,963.97 Quarterly 6/30/25-9/30/25 Actuarial Services Fee GRS 1,600.00 As Needed x1 EDRO calculation Medical Fees Independent Medical Evaluations PC 6,450.00 As Needed x2 Disability Exams Misc Fees Loomis 10.00 As Needed x1 Class Action Handling Fee Total Admin. Fees 71,179.02 Motion Martin, seconded by Rabbitt to accept the financial reports and quarterly bank summaries submitted for October. On a voice vote, motion carried. pg. 1 Board Reports Chubinski – none Martin – none Rabbitt – none Todd – none Wolfersberger – none Vardell –  Holly Vansickle, Fire Lieutenant, exited the DROP with a retirement date effective 11/3/25: o Benefits and interest totaled $131,037.12 o $103.06 was withheld for admin costs (5%) o $1,545.93 was withheld for early withdrawal penalty (75%) o $129,388.13 was rolled over payable to MissionSquare; this payment was issued on 11/3/25. o Her first benefit payment will be made on 12/1/25 at the pro-rated amount of $6,627.07 (11/3/25-11/30/25). o Regular monthly benefits start on 1/1/26 in the amount of $7,100.43.  Steve Bush, Deputy Police Chief, exited the DROP with a retirement date effective 11/7/25: o Benefits and interest totaled $469,010.34. o $1,161.33 was withheld for admin costs (5%) o No early withdrawal penalty, stayed in the DROP the full five years. o $467,849.01 was rolled over payable to MissionSquare; this payment was issued on 11/7/25. o His first benefit payment will be made on 12/1/25 at the pro-rated amount of $5,943.78 (11/7/25-11/30/25). o Regular monthly benefits start on 1/1/26 in the amount of $7,429.73.  William Broderick, Police Dept retiree, passed away 10/23/25: o His 11/1/25 pension benefit was reversed and replaced with a prorated benefit of $2,917.88 (for benefits earned 10/1/25-10/23/25.) o Surviving spouse Sheryl Broderick received an 11/1/25 prorated benefit of $608.95 (for benefits earned 10/24/25-10/31/25.) o Sheryl’s regular benefits payments will begin 12/1/25 in the amount of $2,359.67  Four resolutions to approve below: pg. 2 TIMOTHY D. BENNETT, POLICE OFFICER – RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Timothy D. Bennett requesting an effective retirement date of 12/18/2025, and WHEREAS, Timothy D. Bennett is eligible for retirement based on his service credit pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculation was received, and WHEREAS, Timothy D. Bennett elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Timothy D. Bennett for retirement is approved, and RESOLVED, the retirement benefit for Timothy D. Bennett shall commence as of 12/18/25, and RESOLVED, the gross monthly benefit is $2,422.44, subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $1,094.00 for 14 days in December will be paid on 1/1/26 and the regular gross monthly benefits shall begin 2/1/26. Motion Rabbit, seconded by Martin to approve the retirement resolution for Timothy D. Bennett. On a voice vote, motion carried. MICHAEL J. MCKENZIE, EMERGENCY SERVICES ADMINISTRATOR (PD) – EDRO & RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Michael J. McKenzie requesting an effective retirement date of 10/16/2025, and WHEREAS, Michael J. McKenzie is eligible for retirement based on his service credit pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculation was received, and WHEREAS, Michael J. McKenzie elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Michael J. McKenzie for retirement is approved, and RESOLVED, the retirement benefit for Michael J. McKenzie shall commence as of 10/16/25, and RESOLVED, the gross monthly benefit is $3,520.37, subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $1,816.97 for 15 days in October was paid on 11/1/25 and the regular gross monthly benefits shall begin 12/1/25. WHEREAS, the Board of Trustees is in receipt of an eligible domestic relations order (EDRO) for Michael J. McKenzie and Angela B. McKenzie, and WHEREAS, Angela B. McKenzie, the alternate payee, is eligible for certain benefits pursuant to Public Act 46 of 1991, as amended, and pg. 3 WHEREAS, the EDRO has been accepted by the City of Battle Creek Police and Fire Retirement System Board of Trustees by resolution at its regular meeting on 3/13/2018, and WHEREAS, the final actuarial calculations have been received and paid for, therefore be it RESOLVED, the alternate payee EDRO benefit for Angela B. McKenzie shall commence as of 11/1/25, and RESOLVED, the gross monthly EDRO benefit for Angela B. McKenzie is $928.87, subject to tax withholdings, and RESOLVED, the gross monthly retirement benefit for Michael J. McKenzie has been reduced to $3,520.37, subject to tax withholdings. Motion Rabbit, seconded by Wolfersberger to approve the retirement and EDRO resolutions for Michael J. McKenzie. On a voice vote, motion carried. TODD RATHJEN, POLICE SERGEANT – RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Todd A. Rathjen requesting an effective retirement date of 10/5/2025, and WHEREAS, Todd A. Rathjen is eligible for retirement based on his service credit pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculation was received, and WHEREAS, Todd A. Rathjen elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Todd A. Rathjen for retirement is approved, and RESOLVED, the retirement benefit for Todd A. Rathjen shall commence as of 10/5/25, and RESOLVED, the gross monthly benefit is $7,691.24, subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $6,698.83 for 27 days in October was paid on 11/1/25 and the regular gross monthly benefits shall begin 12/1/25. Motion Rabbitt, seconded by Martin to approve the retirement resolution for Todd A. Rathjen. On a voice vote, motion carried. MICHAEL PATRICK FLEISHER V. TINA PRUITT FLEISHER - DOMESTIC RELATIONS ORDER CALHOUN COUNTY CIRCUIT COURT CASE NO 25-265-DO WHEREAS, the Board of Trustees is in receipt of a Domestic Relations Order dated October 30, 2025, wherein Tina Pruitt Fleisher, the Alternate Payee, is awarded certain rights to the benefits of Michael Patrick Fleisher, the Participant, and WHEREAS, the Alternate Payee is entitled to a portion of the Participant’s monthly retirement benefit from the Retirement System, and pg. 4 WHEREAS, the Alternate Payee’s share of the Participant’s monthly retirement benefit from the Retirement System shall be payable in the amount of $1,500.00 per month and the Alternate Payee is not eligible for any cost of living adjustments that may become payable from the Pension System, and WHEREAS, the Alternate Payee’s share of the Participant’s monthly retirement benefit from the Retirement System shall be payable in the form of a single life annuity over the life of the Participant based on the Participant’s election of the Retirement System’s regular straight life retirement allowance, which further provides that the Alternate Payee will no longer qualify as the Participant’s spouse for purposes of the Retirement System’s automatic 60% surviving spouse benefits, and WHEREAS, said matter having been discussed with legal counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Retirement System and applicable law, therefore be it RESOLVED that the Board acknowledges receipt of said court order and will administer benefits consistent with said order as soon as administratively feasible, and further RESOLVED that a copy of this Resolution be immediately attached as the top sheet of the Participant’s pension file and other appropriate records be retained by the Pension System relative to this matter, and further RESOLVED that copies of this resolution be sent to Michael Patrick Fleisher, the Participant; Kellie E. Podolosky, Esq., attorney for the Participant; Tina Pruitt Fleisher, the Alternate Payee; Jennifer L. Reed, Esq., attorney for the Alternate Payee. Motion Martin, seconded by Todd to approve the Domestic Relations Order resolution for Michael P. Fleisher and Tina P. Fleisher. On a voice vote, motion carried. New Business  Review Calendar Year 2026 meeting schedule o Vardell provided a 2026 board meeting schedule, with tentative monthly meetings on the fourth Monday of each month at 1:30pm in City Hall. The 2026 meeting schedule will be posted to the Board’s page on the City’s website. Motion Martin, seconded by Rabbitt to accept the 2026 meeting schedule for the Police & Fire Pension Board. On a voice vote, motion carried.  CAPTRUST: Cohen provided a third quarter investment update: o U.S. Bonds were up 2% in Q3, 6.1% YTD. U.S. Small Cap Stocks were up 12.4% in Q3, 10.4% YTD. U.S. Large Cap Stocks were up 8.1% in Q3, 14.8% YTD. Developed International Stocks were up 4.8% in Q3, 25.7% YTD. Emerging International Stocks were up 10.9% in Q3, 28.2% YTD. o Growth assets continue to outperform value, with Large Cap Growth up 17.2% YTD and Small Cap Value up 9% YTD. pg. 5  o Passive Management classes have outperformed Active Management classes in the current market environment. Examples of Passive Management classes are AI-Related Sectors, like Communication Services & Tech. o Calendar Year-to-Date as of 9/30/25, the beginning market value of the portfolio was $191,543,766 with an ending value of $209,433,745. o Calendar Year-to-Date as of 9/30/25, the total portfolio was up 12.33%. o Calendar Year-to-Date as of 10/31/25, the total portfolio was up 13.85%. o As of 11/18/25, the market value of the portfolio was at $208,107,198. Public Comment:  Fire Department retirees Gordy Vogt and Chuck Asher expressed concerns regarding medical benefit cost increases for those retirees covered under Fire Act 312.  Comment from Vogt: we are aware that those enrolled in the 401h plan, which are Police retirees who retired prior to 7/1/2007 and Fire retirees who retired prior to 7/1/2004, have their health premiums covered by the City’s 401h fund, and the retirees pay $200.00 a month for this coverage. Since the 401h plan is a closed plan that is shrinking as those retirees pass away, we are wondering if the City would consider allocating any additional 401h funds towards the Fire Act 312 plan? The Fire Act 312 plan consists of Fire retirees that retired after 7/1/2004 through 12/9/2020. The Fire Act 312 plan was in between 401h and the current Police & Fire RHFV plans. Members of the Fire Act 312 plan receive a flat city contribution towards their healthcare costs, ranging from $200-$500, and no RHFV benefit to help supplement the cost. As premiums continue to rise, Fire Act 312 members are having to pay more and more for health care each year. Who would be responsible for deciding how to allocate future 401h funds?  Comment from Chair Chubinski: This would probably be a Commission decision. There used to be a 401h board that has since been disbanded.  Comment from Kuhn: Yes, back in 2007, the Commission designated up to $500,000/year to be used towards 401h retiree healthcare benefits, which is set to millage. As retirees from this group have passed away, this designation is slowly shrinking.  Comment from Asher: The Fire Act 312 group negotiated in 2007 to start pre-funding their retirement benefits as part of their percentage of pay that they were contributing towards retirement. Then in 2019, there was a State Supreme Court decision which ruled that municipalities weren’t obligated to provide lifetime benefits to retirees. At that time, the City allowed us to stay under their healthcare plan, but we were no longer guaranteed retirement benefits that were initially provisions of our union contract. We want to start the conversation to see if there is anything that can be done to help the Fire Act 312 group, since we were caught in between the 401h group’s benefits and the RHFV benefits. pg. 6   Comment from Vogt: We did contribute money towards our healthcare benefits when we were employed. We would like to know where exactly those funds went. For calendar year 2026, our healthcare coverage has gone up almost $100.00/month. We have shopped around and can find comparable coverage outside of the City.  Comment from Vardell: Currently, there are about 40 members of Fire Act 312 that are receiving health benefit coverage from the City.  Comment from Kuhn: I will need to research the history of this issue and follow-up with more information, and ultimately the City Commission will have to weigh in on it.  Kuhn to research the history of this issue and set up a meeting with Vogt and Asher to discuss potential next steps.  Closed session to discuss new disability retirement application. Motion Todd, seconded by Wolfersberger to go into closed session. On a voice vote, motion carried. Motion Todd, seconded by Martin to select Dr. Poortinga as the Board’s appointed doctor for the disability retirement application. On a voice vote, motion carried. Motion Martin, seconded by Todd to exit closed session. On a voice vote, motion carried. Next regular meeting: Monday, December 22nd at 1:30pm. Meeting adjourned at 2:39pm Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 7