Board of Trustees of the Police Pension Fund

Agenda Village of Arlington Heights Board of Trustees of the Police Pension Fund Police Station Community Room - 200 E Sigwalt St., AH 60005 January 24, 2024 5:30 PM I. CALL TO ORDER II. ROLL CALL A. Public Comments III. APPROVAL OF MINUTES A. Approval of Meeting Minutes - October 25, 2023 IV. CLOSED SESSION V. TREASURER'S REPORT A. Report of the Village Treasurer B. Approval of the Check Register VI. PAYMENT OF BILLS VII. REPORTS A. Quarterly Investment Report - Wall Capital Group Potential purchase or sale of securities, portfolio rebalancing, and/or potential retention or termination of investment managers/advisors. VIII. OLD BUSINESS A. Update regarding pending litigation IX. NEW BUSINESS A. Semi-annual review of closed session meeting minutes B. Statements of Economic Interest C. Approve annual Cost of Living Adjustments (COLA'S) for  pensioners D. Review Trustee term expirations and election procedures E. Reallocation of investments, if necessary F. Annual verification for eligibility of pension beneficiaries G. Schedule annual examinations of disabled Police Officers H. Transfer of assets to IPOPIF Adoption of documents to effectuate transfer Adoption of transition cash management policy Adoption of reoccurring cash management policy Adoption of ECF policy and resolution Adoption of other resolutions, instruments of other documents necessary to effectuate transfer of assets to IPOPIF Appointment of authorized representatives and/or agents for ECF and/or IPOPIF I. Michael Cowsert QILDRO - The Fund has received an additional QILDRO Order for a second former spouse with the same first name of Nicole. The case numbers are 2012 DV 1107 and 22 DN 293, respectively J. New Hire Patricio Rodriguez Rucoba - November 27, 2023 K. Notice of Death, John R. Eichinger, November 7, 2023, surviving spouse Kyle Eichinger L. Notice of Death, Ronald E. McClaskey, November 30, 2023, surviving spouse Jeanne M. McClaskey M. Notice of Death, Michael F. McIntyre, December 12, 2023, surviving spouse Cynthia McIntyre X. OTHER BUSINESS XI. PUBLIC COMMENTS 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 Erin Mercado, at 33 S. Arlington Heights Road, Arlington Heights, Illinois 60005, emercado@vah.com or (847)368-5793.  Board of Trustees of the Police Pension Fund 1/24/2024 Item: minutes Department: Police Approval of Meeting Minutes - October 25, 2023 ATTACHMENTS: Description Type October 25, 2023 Meeting Minutes 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, OCTOBER 25, 2023 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: Dave Wall, Wall Capital Group, Keith Karlson, Pension Board Attorney, Mary Ellen Juarez, Assistant Director, Finance, Kim Peterson, Recording Secretary PUBLIC COMMENTS Keith Moens, Arlington Heights resident, asked for the Police Pension Fund meeting minutes to be made available on the Village’s website by either attaching them to the agenda or using a hyperlink. Mr. Karlson advised that the Police Pension Fund does not have a website, nor do they control the Village’s website, therefore they will not be posting anything independently. Mr. Moen’s advised that the Police Pension Fund Board is a public body and the minutes should be made available to the public. Mr. Karlson stated that it is up to the Village to post what they choose to. APPROVAL OF MINUTES A. July 26, 2023 Mr. Klopack moved, seconded by Mr. Flak, to approve the minutes of the regular board meeting held on July 26, 2023. 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 has $165 million in net assets and month to date the Fund typically pays $880,000 in pension payments. In regards to the projected cash flow, there was a transfer of $1 million in July and because the taxes will be late again, Ms. Juarez suggested an additional transfer of $2 million in December. Mr. Malone asked if action needed to be taken tonight to approve the transfer, which Mr. Henderson advised that they do not because of the standing resolution they have regarding monetary transfers. Mr. Wall advised the Fund is overweight in equities, so some of this money can be taken from the NIS account to get it back to 65%. Ms. Juarez advised that $1.5 million would be sufficient, if the Board is more -1- comfortable transferring that amount. Mr. Malone stated that he would rather transfer the lesser amount and not have the money just sitting there. Mr. Milutinovic moved, seconded by Mr. Falk, to accept the Treasurer’s Report. The motion passed unanimously. B. Approval of the Check Register Mr. Milutinovic moved, seconded by Mr. Falk, to approve checks #720 through 731. Roll Call was taken. The motion passed unanimously. PAYMENT OF BILLS None. REPORTS A. Quarterly Investment Report – Wall Capital Group  Potential purchase or sale of securities, portfolio rebalancing, and/or potential retention or termination of investment managers/advisors Mr. Wall stated that as of September 30, 2023, the plan is sitting at approximately 68% of the portfolio in equities, with $165 million in assets. Mr. Wall advised that for the quarter, the plan is down approximately 2.4% on a YTD basis, and up approximately 6.7% YTD. Mr. Wall advised that the last quarter end total net flow is approximately $2.5 million and there is approximately $1.7 million in the operating account. The NIS Fixed Income Account was up approximately 1% on a YTD basis and the Passive All-cap portfolio is up approximately 11.25 % YTD. The Great Lakes Large-Cap is doing really well and managing approximately $25 million and is up approximately 5.25% on a YTD basis. The Passive Large-Cap is up approximately 14% on a YTD basis. Mr. Wall explained how GW&K Small- cap portfolio has had a challenging year and is down approximately 1.1% on a YTD basis, with a benchmark of positive 2.5%. The International portfolio is up approximately 6.6% on a YTD basis. Mr. Wall explained how assets might start moving out in January of 2024, and once he makes the transfers, the process happens pretty quickly. Mr. Karlson advised that the Board will spend a lot of time talking about this transition in January. Mr. Milutinovic moved, seconded by Mr. Klopack, to accept the Quarterly Investment Report. The motion passed unanimously. OLD BUSINESS A. Update regarding pending litigation Mr. Karlson advised the supreme court will be accepting oral arguments on November 21st and could make a ruling on the consolidated case as early as the end of the year. Once the ruling is made, the Board will have the ability to move the money within 30 days. There will be many items on the agenda in January dealing with IPOPIF and the consolidated fund. B. 2023 IPPFA Training Conference Attendance/Trustee Certification -2- Mr. Milutinovic asked everyone to email their training certificates to him, and if they haven’t received them yet, they should be available on the IPPFA’s website (IPPFA.org). Mr. Milutinovic advised that Trustee Klopack received his 16 hours of required training, which includes eight hours of new trustee training, as well as eight hours of Open Meeting Act and FOIA training. NEW BUSINESS A. IDOI Annual Statement Ms. Juarez advised that this report has already been filed. B. Establish next calendar year quarterly meetings Mr. Milutinovic advised that next year’s meetings will continue to be held on the 4 th Wednesday of each month, therefore the dates for the year 2024 are as follows: January 24th, April 24th, July 24th and October 23rd. Mr. Falk moved, seconded by Mr. Malone, to accept the 2024 meeting dates. The motion passed unanimously. C. Notice of Death, Thomas Scott Osborn, 08/22/2023 Mr. Milutinovic, seconded by Mr. Falk, to terminate the regular retirement benefit and begin the surviving spouse benefit with the retirement benefit terminating 08/22/23 and the surviving spouse benefit beginning 08/23/23 with no COLA’s moving forward. Roll Call was taken. The motion passed unanimously. D. Notice of Death, Joyce Leo Plaisted, 09/19/2023 Mr. Henderson moved, seconded by Mr. Milutinovic, to terminate the regular retirement benefit and begin the surviving spouse benefit with the retirement benefit terminating 09/19/23 and the surviving spouse benefit beginning 09/20/23 with no COLA’s moving forward. Roll Call was taken. The motion passed unanimously. OTHER BUSINESS None. PUBLIC COMMENTS None. ADJOURNMENT Mr. Malone moved, seconded by Mr. Henderson to adjourn the meeting at 6:10 PM. The motion passed unanimously. -3-