Police Pension Board

Agenda Village of Glen Ellyn Police Pension Board Meeting Wednesday, July 16, 2025 4:30 PM Glen Ellyn Civic Center, Room 306 Visitors are most welcome to attend all meetings of the Police Pension Board and can find copies of the Agenda at the meeting or online at www.glenellyn.org prior to the meeting. Any individual with a disability requiring reasonable accommodation in order to participate in a meeting should contact The Village of Glen Ellyn ADA Coordinator, 630-469-5000, at least five (5) business days in advance of the next scheduled meeting. All matters on the Agenda may be discussed, amended, and acted upon. A. Call to Order B. Roll Call C. Public Comment D. Approval of Minutes 1) April 16, 2025 Meeting 2) Semi-Annual Review of Closed Session Meeting Minutes E. Accountant's Report 1) Lauterbach and Amen will present the monthly financial report 2) Presentation and approval of bills as listed in the monthly financial report 3) Additional Bills 4) Cash Management Policy F. Investment Report 1) IPOPIF - Verus Advisory Inc. G. Communication and Reports 1) Affidavits of Continued Eligibility 2) Active Member File Maintenance H. Trustee Training Updates 1) Approval of Trustee Training Registration Fees & Reimbursable Expenses I. Approval of Membership/Withdrawals from Fund 1) Withdrawal From Fund - John Murray, Alexandra Bacza, Nancy Salgado 2) Application for membership - Gabriel Leon J. Applications for Retirement/Disability Benefits K. Old Business 1) IDOI Annual Statement L. New Business 1) Review/Approve - Actuarial Valuation and Tax Levy Request 2) Board Officer Elections - President, Vice President, Secretary, and Assistant Village of Glen Ellyn Page 1 of 40 Police Pension Board Agenda July 16, 2025 Page 2 Secretary 3) FOIA Officer and OMA Designee M. Attorney Report 1) Legal Updates N. Adjourn to Exec Session, if needed O. Adjourn Village of Glen Ellyn Page 2 of 40 Village of Glen Ellyn Minutes Village of Glen Ellyn Police Pension Board Meeting Regular Meeting April 16, 2025 4:30 PM Civic Center Room 306 Board or Police Pension Date: April 16, 2025 Commission: Meeting: Regular Called to 4:30 p.m. Order: Quorum: Yes Adjourned: 4:45 p.m. MEMBER ATTENDANCE: Jim Monson President Present John Adduci Trustee Present William Housey Jr. Trustee Present James King Trustee Present Anthony Terranova Trustee Present Also Present: Patrick Brankin Finance Director Raymond Page Lauterbach & Amen Public: A. CALL TO ORDER The April 16, 2025 meeting of the Police Pension Board was called to order by President Monson at 4:30 pm at the Glen Ellyn Civic Center, Room 306. B. PUBLIC COMMENT – None C. APPROVAL OF MINUTES FROM JANUARY 15, 2025 MEETING MOTION TO APPROVE MINUTES FROM JANUARY 15, 2025 POLICE PENSION BOARD MEETING MOTION BY: John Adduci, Trustee SECONDED BY: Anthony Terranova, Trustee RESULT: UNANIMOUS APPROVAL Page 3 of 40  Police Pension 2 April 16, 2025 D. Accountant’s Report 1. Lauterbach and Amen deliver the monthly financial report, with Raymond page presenting the financial details for the month ending March 31,2025 Statement of Net Position as of March 31, 2025: •Total Assets: $41,718,129.00 Total Liabilities: $800.00 Total Net Position held in Trust: $41,484,268.89 •Total Contributions received: $811,123.36 •Total Additions: $995,818.95 •Total Expenses - $791,958.84 Total Increase in Net position: $233,860.11 Raymond Page reviews the cash analysis, revenue, expense, contribution, payroll, quarterly disbursement, and transfer reports in detail. Trustee Terranova motioned to accept the accountant's report as stated, seconded by Trustee King. The motion is unanimously approved. 2. Presentation and approval of bills as listed in the monthly financial report. Raymond Page reviewed the quarterly disbursement report. Trustee Terranova made a motion to approve the itemized quarterly disbursements in the amount of $18,966.56. Trustee Adduci seconded the motion. MOTION TO APPROVE THE ITEMIZED QUARTERLY DISBURSEMENTS MOTION BY: Anthony Terranova, Trustee SECONDED BY: John Adduci, Trustee AYES: Terranova, Adduci, King, Monson, Housey 3. Additional Bills - none 4. Cash Management Policy – No action needed. E. Investment Report 1. IPOPIF Versus Advisory Inc. – The Police Pension Board received and reviewed the performance of the IPOPIF report. F. Communication and Reports 1. Affidavits of Continued Eligibility – Raymond Page confirmed that all outstanding affidavits have been received and submitted to the Police Pension Board. 2. Statements of Economic Interest – Raymond Page confirmed that the Police Pension Board has completed their Statements of Economic Interest. Page 4 of 40  Police Pension 3 April 16, 2025 G. Trustee Training Updates 1. Approval of Trustee Training Registration Fees and Reimbursable Expenses – These expenses were previously approved by the Police Pension Board as part of the itemized quarterly disbursements. H. Approval of Membership / Withdrawals from Fund - None I. APPLICATIONS FOR RETIREMENT / DISABILITY BENEFITS - None J. OLD BUSINESS - None K. NEW BUSINESS 1. Certify Board Election Results – Raymond Page provided an update on the election results, noting that James King was re-elected as the retired member, and Anthony Terranova and James Monson were re-elected as active members. Trustee Adduci motioned to accept the election results, and William Housey seconded the motion. 2. IDOI Annual Statement –Raymond Page mentioned that this is still in process and under review. 3. Fiduciary Liability Insurance Renewal – Finance Director Brankin informed the Police Pension Board that the fiduciary liability insurance premium increased by $5. Trustee Adduci motioned to approve the renewal of the Fiduciary Liability Insurance with the updated premium of $5,915.00. Trustee King seconded the motion. MOTION TO APPROVE THE ITEMIZED QUARTERLY DISBURSEMENTS MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee AYES: Terranova, Adduci, King, Monson, Housey L. ATTORNEY’S REPORT 1. Legal updates – none M. ADJOURNMENT – Trustee Housey motioned to adjourn the meeting, and Trustee Adduci seconded. The meeting was adjourned at 4:45 p.m. Submitted by Elisa Pollina, Recording Secretary Reviewed by Finance Director Brankin Page 5 of 40  Glen Ellyn Police Pension Meeting 7/16/2025 4:30 PM Board Department: Finance 535 Duane Street Department Head: Patrick Brankin Glen Ellyn, IL 60137 Category: Report Prepared By: Patrick Brankin AGENDA ITEM (ID # 2025- DOC ID: 2025-590 590) IPOPIF - Verus Advisory Inc. Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: 1. Verus Statement May 2025 2. IPOPIF 5-31-25 Page 6 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: May 31, 2025 Market % of Target Since Inception 1 Mo QTD Fiscal YTD YTD 1 Yr 3 Yrs Value Portfolio (%) Inception Date Total Fund with Member and Transition Accounts 13,302,951,645 100.0 100.0 3.7 5.0 9.8 5.5 10.9 8.0 6.0 03/01/22 Policy Index 3.5 4.6 9.4 5.1 10.3 7.9 5.8 Policy Index- Broad Based 4.0 5.5 9.8 5.2 11.3 8.6 5.7 IPOPIF Investment Portfolio 13,302,951,645 100.0 100.0 3.7 5.0 9.6 5.4 10.7 7.9 5.8 04/01/22 Policy Index 3.5 4.6 9.4 5.1 10.3 7.9 5.8 Policy Index- Broad Based 4.0 5.5 9.8 5.2 11.3 8.6 5.6 Growth 7,902,460,041 59.4 58.0 5.9 8.1 11.8 7.5 13.0 10.8 7.6 04/01/22 Growth Benchmark 5.5 7.6 11.5 7.0 12.5 10.5 7.4 RhumbLine Russell 1000 Index 3,062,096,827 23.0 23.0 6.4 5.8 10.1 1.0 13.7 14.2 10.0 04/01/22 Russell 1000 Index 6.4 5.8 10.1 1.0 13.7 14.3 10.1 RhumbLine Russell 2000 Index 649,776,349 4.9 5.0 5.3 2.8 2.1 -6.8 1.2 4.9 1.3 04/01/22 Russell 2000 Index 5.3 2.9 2.1 -6.8 1.2 5.0 1.4 SSgA Non-US Developed Index 2,600,812,420 19.6 19.0 4.8 9.7 16.4 16.6 14.4 11.5 8.9 04/01/22 MSCI World ex U.S. (Net) 4.7 9.5 16.0 16.3 14.1 11.1 8.4 International Developed Small Cap Equity 733,326,102 5.5 5.0 6.9 13.4 19.2 15.8 18.7 8.8 5.7 04/01/22 MSCI World ex U.S. Small Cap Index (Net) 5.9 11.7 17.6 15.5 14.2 7.4 4.4 Acadian ACWI ex US Small-Cap Fund 359,917,547 2.7 2.5 6.5 11.5 17.1 13.4 17.7 - 20.0 02/01/24 MSCI AC World ex USA Small Cap (Net) 6.5 11.5 12.8 12.2 11.6 - 13.2 WCM International Small Cap Growth Fund 182,578,065 1.4 1.3 8.4 18.3 18.7 14.0 17.9 - 13.6 03/01/24 MSCI AC World ex USA Small Cap (Net) 6.5 11.5 12.8 12.2 11.6 - 13.2 LSV International Small Cap Value Equity Fund 190,830,490 1.4 1.3 6.3 12.7 23.7 22.4 21.1 - 21.6 03/01/24 S&P Developed Ex-U.S. SmallCap (Net) 6.0 12.2 14.5 15.8 11.1 - 14.2 Emerging Market Equities 856,448,342 6.4 6.0 7.1 11.4 4.5 9.3 8.9 3.7 2.2 04/01/22 Emerging Markets Equity Benchmark 4.9 9.0 3.2 7.1 8.0 3.5 1.6 William Blair Emerging Markets ex China Growth Fund 426,149,273 3.2 1.4 6.9 11.5 - 0.6 - - 0.6 01/01/25 MSCI Emerging Markets ex China IMI (Net) 5.5 9.5 - 6.7 - - 6.7 ARGA Emerging Markets Ex China Equity 430,299,069 3.2 2.3 7.4 11.9 - 17.1 - - 12.8 12/01/24 MSCI Emerging Markets ex China (Net) 4.9 9.0 - 7.1 - - 5.8 The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability. 1 Page 7 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: May 31, 2025 Market % of Target Since Inception 1 Mo QTD Fiscal YTD YTD 1 Yr 3 Yrs Value Portfolio (%) Inception Date Income 2,073,645,742 15.6 16.0 1.4 1.4 7.8 2.9 8.6 6.0 4.1 04/01/22 Income Benchmark 1.3 1.2 7.5 2.6 8.3 6.4 4.7 SSgA High Yield Corporate Credit 797,180,053 6.0 6.2 1.8 1.6 8.3 2.6 9.4 6.6 5.0 04/01/22 Spliced SSgA U.S. High Yield Index 1.7 1.7 8.2 2.6 9.3 6.6 5.0 Emerging Market Debt 773,379,610 5.8 6.0 1.2 1.4 8.2 4.1 8.9 5.5 3.1 04/01/22 Emerging Markets Debt Benchmark 1.1 0.9 7.4 3.2 8.0 6.1 4.1 SSgA EMD Hard Index Fund 571,115,566 4.3 4.5 1.1 0.9 7.8 3.2 8.4 5.3 2.9 04/01/22 Spliced SSgA EMD Hard Index 1.1 0.9 7.4 3.2 8.0 5.6 3.3 Capital Group Emerging Markets Debt 202,264,045 1.5 1.5 1.5 2.7 - 6.5 - - 4.5 11/01/24 Spliced Capital Group EMD Index 1.1 2.6 - 6.0 - - 4.6 Bank Loans 403,086,079 3.0 3.0 1.4 1.5 6.3 1.9 6.7 - 7.4 03/01/24 S&P UBS Leveraged Loan Index 1.4 1.3 6.4 1.9 6.7 - 7.4 Ares Institutional Loan Fund 134,216,498 1.0 1.0 1.3 1.5 6.6 1.8 7.0 - 7.8 03/01/24 S&P UBS Leveraged Loan Index 1.4 1.3 6.4 1.9 6.7 - 7.4 Aristotle Institutional Loan Fund 268,869,581 2.0 2.0 1.4 1.5 6.2 2.0 6.5 - 7.2 03/01/24 S&P UBS Leveraged Loan Index 1.4 1.3 6.4 1.9 6.7 - 7.4 Oaktree Global Credit Fund 100,000,000 0.8 0.8 0.0 - - - - - 0.0 05/01/25 Real Assets 715,718,043 5.4 6.0 1.6 -0.2 7.6 0.6 9.5 1.6 0.2 04/01/22 Real Assets Benchmark 1.6 -0.1 7.2 1.0 8.9 0.3 -2.2 SSgA REITs Index 499,686,873 3.8 4.0 2.1 -0.8 9.1 0.4 12.1 2.4 -1.6 04/01/22 Dow Jones U.S. Select REIT Total Return Index 2.1 -0.7 9.2 0.4 12.1 2.3 -1.6 Principal USPA 216,031,170 1.6 2.0 0.5 1.1 2.0 1.0 1.2 -5.8 -5.2 05/01/22 The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability. 2 Page 8 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: May 31, 2025 Market % of Target Since Inception 1 Mo QTD Fiscal YTD YTD 1 Yr 3 Yrs Value Portfolio (%) Inception Date Risk Mitigation 2,611,127,819 19.6 20.0 -0.3 0.3 5.0 2.5 5.7 3.1 2.7 04/01/22 Risk Mitigation Benchmark -0.4 0.3 5.0 2.5 5.7 3.1 2.7 SSgA US Treasury Index 372,301,330 2.8 3.0 -1.0 -0.4 4.0 2.5 5.1 - 6.1 05/01/24 Blmbg. U.S. Treasury Index -1.0 -0.4 4.0 2.5 5.0 - 6.1 SSgA Core Fixed Income Index 373,149,782 2.8 3.0 -0.7 -0.3 4.5 2.4 5.5 1.5 0.4 04/01/22 Blmbg. U.S. Aggregate Index -0.7 -0.3 4.5 2.4 5.5 1.5 0.4 SSgA Short-Term Gov't/Credit Index 1,327,077,302 10.0 10.0 -0.1 0.6 5.3 2.3 5.9 3.3 3.2 04/01/22 Bloomberg U.S. Gov/Credit 1-3 Year Index -0.1 0.6 5.3 2.3 5.9 3.3 3.1 SSgA US TIPS Index 376,332,336 2.8 3.0 -0.3 0.4 6.0 3.5 6.7 3.2 3.1 04/01/22 Blmbg. U.S. TIPS 0-5 Year -0.4 0.4 5.9 3.5 6.6 3.3 3.2 Cash 161,933,287 1.2 1.0 0.3 0.7 4.0 1.6 4.5 4.1 3.9 04/01/22 90 Day U.S. Treasury Bill 0.4 0.7 4.3 1.7 4.8 4.4 4.2 IPOPIF Pool Fixed Income Transition 333,782 0.0 - Member Accounts - 0.0 - Transition Account - 0.0 - The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability. 3 Page 9 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: April 30, 2025 Performance Return Calculations Performance is calculated using Time Weighted Rates of Return (TWRR) methodologies. Monthly returns are geometrically linked and annualized for periods longer than one year. Data Source Verus is an independent third party consulting firm and calculates returns from best source book of record data. Returns calculated by Verus may deviate from those shown by the manager in part, but not limited to, differences in prices and market values reported by the custodian and manager, as well as significant cash flows into or out of an account. It is the responsibility of the manager and custodian to provide insight into the pricing methodologies and any difference in valuation. Manager Line Up Manager Inception Date Data Source Manager Inception Date Data Source RhumbLine Russell 1000 Index Fund 3/15/2022 State Street SSgA EMD Hard Index Fund 3/14/2022 State Street RhumbLine Russell 2000 Index Fund 3/15/2022 State Street Capital Group Emerging Markets Debt Fund 10/21/2024 State Street SSgA Non-US Developed Index Fund 3/10/2022 State Street Ares Institutional Loan Fund 3/1/2024 Ares SSgA Non-US Developed SC Index Fund 3/10/2022 State Street Aristotle Institutional Loan Fund 3/1/2024 Aristotle Acadian ACWI ex US Small-Cap Fund 1/30/2024 State Street Principal USPA 4/6/2022 State Street WCM International Small Cap Growth Fund 3/1/2024 WCM Oaktree Global Credit Fund 5/1/2025 Oaktree LSV International Small Cap Value Equity Fund 3/1/2024 LSV SSgA REITs Index Fund 3/10/2022 State Street SSgA Emerging Markets Equity Index Fund 3/1/2022 State Street SSgA US Treasury Index Fund 5/1/2024 State Street SSgA Emerging Markets ex China Equity Index Fun 5/1/2024 State Street SSgA Core Fixed Income Index Fund 3/17/2022 State Street William Blair EM ex China Growth Fund 12/9/2024 William Blair SSgA Short-Term Gov't/Credit Index Fund 3/17/2022 State Street ARGA Emerging Markets Ex China Equity 12/1/2024 ARGA SSgA US TIPS Index Fund 3/17/2022 State Street SSgA High Yield Corporate Credit 3/18/2022 State Street Cash 3/22/2022 State Street Custom Benchmark Composition Benchmark Time period Composition Policy Index -Broad Benchmark 4/1/2022 - Present 70% MSCI ACWI IMI (Net) and 30% Bloomberg Global Multiverse. Spliced SSgA EMD Hard Benchmark 7/1/2023 - Present 100% JPM EMBI Global Diversified Index Spliced SSgA EMD Hard Benchmark 3/14/2022 - 6/30/2022 100% JPM EMBI Global Core Index Spliced SSgA U.S. High Yield Index 12/1/2022 - Present 100% ICE BofA US High yield Master II Constrained Spliced SSgA U.S. High Yield Index 4/1/2022 - 11/30/2022 100% Bloomberg U.S. High Yield Very Liquid Index Spliced Capital Group EMD Benchmark 1/1/2025 - Present 50% JPM GBI EM GD/30% JPM EMBI GD/20% JPM CEMBI BD Spliced Capital Group EMD Benchmark 10/21/2024 - 12/31/2024 50% JPM EMBI GD/50% JPM GBI EM GD 3 Page 10 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: April 30, 2025 Policy Index Composition Policy Risk As of 5/1/2025 Policy Index Growth Income Real Assets Risk Mitigation As of 12/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23.0% 39.7% Russell 1000 23.0% 39.7% Russell 2000 5.0% 8.6% Russell 2000 5.0% 8.6% MSCI World ex U.S. 19.0% 32.8% MSCI World ex U.S. 19.0% 32.8% MSCI World ex U.S. Small Cap 5.0% 8.6% MSCI World ex U.S. Small Cap 5.0% 8.6% MSCI Emerging Markets ex China 6.0% 10.3% MSCI Emerging Markets ex China 6.0% 10.3% Bloomberg US Corporate High Yield Index 6.2% 38.9% Bloomberg US Corporate High Yield Index 7.0% 43.8% JPM EMBI Global Diversified Index 6.0% 37.5% JPM EMBI Global Diversified Index 6.0% 37.5% S&P UBS Leveraged Loan Index 3.0% 18.8% S&P UBS Leveraged Loan Index 3.0% 18.8% Private Credit Actual Performance 0.8% 4.8% NFI-ODCE Equal-Weighted Index 2.0% 33.3% NFI-ODCE Equal-Weighted Index 2.0% 33.3% Dow Jones US Select REIT Index 4.0% 66.7% Dow Jones US Select REIT Index 4.0% 66.7% Bloomberg US Aggregate Index 3.0% 15.0% Bloomberg US Aggregate Index 3.0% 15.0% Bloomberg US Treasury Index 3.0% 15.0% Bloomberg US Treasury Index 3.0% 15.0% Bloomberg 1-3 Year Gov/Credit Index 10.0% 50.0% Bloomberg 1-3 Year Gov/Credit Index 10.0% 50.0% Bloomberg US TIPS 0-5 Year 3.0% 15.0% Bloomberg US TIPS 0-5 Year 3.0% 15.0% 90 Day US Treasury Bill Index 1.0% 5.0% 90 Day US Treasury Bill Index 1.0% 5.0% Policy Risk As of 11/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 10/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 0.7% 1.2% MSCI Emerging Markets 0.8% 1.4% MSCI Emerging Markets ex China 5.3% 9.2% MSCI Emerging Markets ex China 5.2% 9.0% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% S&P UBS Leveraged Loan Index 3% 18.8% S&P UBS Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Treasury Index 3% 15.0% Bloomberg US Treasury Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 10% 50.0% Bloomberg 1-3 Year Gov/Credit Index 10% 50.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 9/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 8/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 1.5% 2.6% MSCI Emerging Markets 2% 3.4% MSCI Emerging Markets ex China 4.5% 7.8% MSCI Emerging Markets ex China 4% 6.9% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% S&P UBS Leveraged Loan Index 3% 18.8% S&P UBS Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Treasury Index 3% 15.0% Bloomberg US Treasury Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 10% 50.0% Bloomberg 1-3 Year Gov/Credit Index 10% 50.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% 3 Page 11 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: April 30, 2025 Policy Index Composition Policy Risk As of 7/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 6/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 3% 5.2% MSCI Emerging Markets 4% 6.9% MSCI Emerging Markets ex China 3% 5.2% MSCI Emerging Markets ex China 2% 3.4% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% S&P UBS Leveraged Loan Index 3% 18.8% S&P UBS Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Treasury Index 3% 15.0% Bloomberg US Treasury Index 2% 10.0% Bloomberg 1-3 Year Gov/Credit Index 10% 50.0% Bloomberg 1-3 Year Gov/Credit Index 11% 55.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 5/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 4/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 5% 8.6% MSCI Emerging Markets 6% 10.3% MSCI Emerging Markets ex China 1% 1.7% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% S&P UBS Leveraged Loan Index 3% 18.8% S&P UBS Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg US Treasury Index 1% 5.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 12% 60.0% 90 Day US Treasury Bill Index 1% 5.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 3/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 5/1/2023 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 18% 31.0% MSCI World ex U.S. 18% 31.0% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 7% 12.1% MSCI Emerging Markets 7% 12.1% Bloomberg US Corporate High Yield Index 8.5% 53.1% Bloomberg US Corporate High Yield Index 10% 62.5% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% S&P UBS Leveraged Loan Index 1.5% 9.4% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% 3 Page 12 of 40 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: April 30, 2025 Policy Index Composition Policy Risk As of 1/1/2023 Policy Index Growth Income Real Assets Risk Mitigation As of 3/31/2022 Index Growth Income Real Assets Mitigation Russell 1000 18% 36.0% Russell 3000 23% 46.0% Russell 2000 5% 10.0% MSCI ACWI ex USA IMI 20% 40.0% MSCI World ex U.S. 15% 30.0% MSCI Emerging Markets IMI 7% 14.0% MSCI World ex U.S. Small Cap 5% 10.0% Bloomberg US Corporate High Yield Index 10% 62.5% MSCI Emerging Markets 7% 14.0% 50% JPM EMBI GD/50% JPM GBI EM GD 6% 37.5% Bloomberg US Corporate High Yield Index 10% 62.5% NCREIF Property Index 2% 66.7% JPM EMBI Global Diversified Index 6% 37.5% Dow Jones US Select REIT Index 4% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Bloomberg US Aggregate Index 7% 25.0% Dow Jones US Select REIT Index 4% 66.7% Bloomberg 1-3 Year Gov/Credit Index 15% 53.6% Bloomberg US Aggregate Index 7% 25.0% Bloomberg US TIPS 0-5 Year 3% 10.7% Bloomberg 1-3 Year Gov/Credit Index 15% 53.6% 90 Day US Treasury Bill Index 3% 10.7% Bloomberg US TIPS 0-5 Year 3% 10.7% 90 Day US Treasury Bill Index 3% 10.7% 3 Page 13 of 40 Glossary Allocation Effect: An attribution effect that describes the amount attributable to the managers' asset allocation decisions, relative to the benchmark. Alpha: The excess return of a portfolio after adjusting for market risk. This excess return is attributable to the selection skill of the portfolio manager. Alpha is calculated as: Portfolio Return [Risk free Rate + Portfolio Beta x (Market Return Risk free Rate)]. ‐ ‐ ‐ ‐ Benchmark R squared: Measures how well the Benchmark return series fits the manager's return series. The higher the Benchmark R squared, the more appropriate the benchmark is for the manager. Beta: A measure ‐ of systematic, or market risk; the part of risk in a portfolio or security that is attributable to general market movements. ‐Beta is calculated by dividing the covariance of a security by the variance of the market. Book to Market: The ratio of book value per share to market price per share. Growth managers typically have low book to market ratios while value managers typically have high book to market ratios. ‐ ‐Ratio: A statistical measure of an investment manager's overall performance in up or down markets. The capture Capture ‐ ‐ratio is used to evaluate how well an investment manager performed ‐ ‐ relative to an index during periods when that index has risen (up market) or fallen (down market). The capture ratio is calculated by dividing the manager's returns by the returns of the index during the up/down market, and multiplying that factor by 100. Correlation: A measure of the relative movement of returns of one security or asset class relative to another over time. A correlation of 1 means the returns of two securities move in lock step, a correlation of 1 means the returns of two securities move in the exact opposite direction over time. Correlation is used as a measure to help maximize the benefits of diversification when constructing an investment portfolio. ‐ Excess Return: A measure of the difference in appreciation or depreciation in the price of an investment compared to its benchmark, over a given time period. This is usually expressed as a percentage and may be annualized over a number of years or represent a single period. Information Ratio: A measure of a manager's ability to earn excess return without incurring additional risk. Information ratio is calculated as: excess return divided by tracking error. Interaction Effect: An attribution effect that describes the portion of active management that is contributable to the cross interaction between the allocation and selection effect. This can also be explained as an effect that cannot be easily traced to a source. Portfolio Turnover: The percentage of a portfolio that is sold and replaced (turned over) during a given time period. Low portfolio turnover is indicative of a buy and hold strategy while high portfolio turnover implies a more active form of management. Price to Earnings Ratio (P/E): Also called the earnings multiplier, it is calculated by dividing the price of a company's stock into earnings per share. Growth managers typically hold stocks with high price to earnings ratios whereas value managers hold stocks with low price to earnings ratios. ‐ ‐ ‐ ‐ R Squared: Also called the coefficient‐ ‐of determination, it measures the amount of variation in one variable explained by variations in another, i.e., the goodness of fit to a benchmark. In the case of investments, the term is used to explain the amount of variation in a security or portfolio explained by movements in the market or the portfolio's benchmark. ‐ Selection Effect: An attribution effect that describes the amount attributable to the managers' stock selection decisions, relative to the benchmark. Sharpe Ratio: A measure of portfolio efficiency. The Sharpe Ratio indicates excess portfolio return for each unit of risk associated with achieving the excess return. The higher the Sharpe Ratio, the more efficient the portfolio. Sharpe ratio is calculated as: Portfolio Excess Return / Portfolio Standard Deviation. Sortino Ratio: Measures the risk adjusted return of an investment, portfolio, or strategy. It is a modification of the Sharpe Ratio, but penalizes only those returns falling below a specified benchmark. The Sortino Ratio uses downside deviation in the denominator rather than standard deviation, like the Sharpe Ratio. ‐ Standard Deviation: A measure of volatility, or risk, inherent in a security or portfolio. The standard deviation of a series is a measure of the extent to which observations in the series differ from the arithmetic mean of the series. For example, if a security has an average annual rate of return of 10% and a standard deviation of 5%, then two thirds of the time, one would expect to receive an annual rate of return between 5% and 15%. Style Analysis: A return based analysis designed to identify combinations of passive investments ‐ to closely replicate the performance of funds Style Map: A specialized form or scatter plot chart typically used to show where a Manager lies in relation to a set of style indices on a two dimensional plane. This is simply a way of viewing the asset loadings in a different context. The coordinates are calculated by rescaling the asset loadings to range from 1 to 1 on each axis and are dependent on the Style Indices comprising the Map. ‐ ‐ Page 14 of 40 Disclosure This report contains confidential and proprietary information and is subject to the terms and conditions of the Consulting Agreement. It is being provided for use solely by the customer. The report may not be sold or otherwise provided, in whole or in part, to any other person or entity without written permission from Verus Advisory, Inc., (hereinafter Verus) or as required by law or any regulatory authority. The information presented does not constitute a recommendation by Verus and cannot be used for advertising or sales promotion purposes. This does not constitute an offer or a solicitation of an offer to buy or sell securities, commodities or any other financial instruments or products. The information presented has been prepared using data from third party sources that Verus believes to be reliable. While Verus exercised reasonable professional care in preparing the report, it cannot guarantee the accuracy of the information provided by third party sources. Therefore, Verus makes no representations or warranties as to the accuracy of the information presented. Verus takes no responsibility or liability (including damages) for any error, omission, or inaccuracy in the data supplied by any third party. Nothing contained herein is, or should be relied on as a promise, representation, or guarantee as to future performance or a particular outcome. Even with portfolio diversification, asset allocation, and a long‐term approach, investing involves risk of loss that the investor should be prepared to bear. The information presented may be deemed to contain forward‐looking information. Examples of forward looking information include, but are not limited to, (a) projections of or statements regarding return on investment, future earnings, interest income, other income, growth prospects, capital structure and other financial terms, (b) statements of plans or objectives of management,(c) statements of future economic performance, and (d) statements of assumptions, such as economic conditions underlying other statements. Such forward‐looking information can be identified by the use of forward looking terminology such as believes, expects, may, will, should, anticipates, or the negative of any of the foregoing or other variations thereon comparable terminology, or by discussion of strategy. No assurance can be given that the future results described by the forward‐looking information will be achieved. Such statements are subject to risks, uncertainties, and other factors which could cause the actual results to differ materially from future results expressed or implied by such forward looking information. The findings, rankings, and opinions expressed herein are the intellectual property of Verus and are subject to change without notice. The information presented does not claim to be all‐inclusive, nor does it contain all information that clients may desire for their purposes. The information presented should be read in conjunction with any other material provided by Verus, investment managers, and custodians. Verus will make every reasonable effort to obtain and include accurate market values. However, if managers or custodians are unable to provide the reporting period's market values prior to the report issuance, Verus may use the last reported market value or make estimates based on the manager's stated or estimated returns and other information available at the time. These estimates may differ materially from the actual value. Hedge fund market values presented in this report are provided by the fund manager or custodian. Market values presented for private equity investments reflect the last reported NAV by the custodian or manager net of capital calls and distributions as of the end of the reporting period. These values are estimates and may differ materially from the investments actual value. Private equity managers report performance using an internal rate of return (IRR), which differs from the time‐weighted rate of return (TWRR) calculation done by Verus. It is inappropriate to compare IRR and TWRR to each other. IRR figures reported in the illiquid alternative pages are provided by the respective managers, and Verus has not made any attempts to verify these returns. Until a partnership is liquidated (typically over 10‐12 years), the IRR is only an interim estimated return. The actual IRR performance of any LP is not known until the final liquidation. Net‐of‐Fees Returns mean gross‐of‐fees returns reduced by fees and expenses charged by third‐party investment managers on the products of such managers held by client. Net‐of‐Fees Returns does not include a reduction of returns for Verus’ investment management and consulting fees, or other expenses incurred by the asset owner, fund or plan. Verus receives universe data from InvMetrics, eVestment Alliance, and Morningstar. We believe this data to be robust and appropriate for peer comparison. Nevertheless, these universes may not be comprehensive of all peer investors/managers but rather of the investors/managers that comprise that database. The resulting universe composition is not static and will change over time. Returns are annualized when they cover more than one year. Investment managers may revise their data after report distribution. Verus will make the appropriate correction to the client account but may or may not disclose the change to the client based on the materiality of the change. Page 15 of 40 GLEN ELLYN POLICE PENSION FUND Month Ended: May 31, 2025 Market Value Summary: Current Period Year to Date Beginning Balance $42,149,567.97 $41,447,815.46 Contributions $78,500.00 $411,800.00 Withdrawals ($63,636.00) ($318,180.00) Transfers In/Out $0.00 $0.00 Income $20,645.57 $91,412.79 Administrative Expense ($794.79) ($3,493.99) Investment Expense ($814.23) ($3,108.76) Investment Manager Fees ($3,856.28) ($8,951.28) IFA Loan Repayment $0.00 $0.00 Adjustment $0.00 $0.00 Realized Gain/Loss $140,805.87 $185,669.63 Unrealized Gain/Loss $1,356,251.51 $1,873,705.77 Ending Balance $43,676,669.62 $43,676,669.62 Performance Summary: Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: 3.59% 4.68% 5.15% 10.50% 7.75% N/A N/A 5.79% 04/01/2022 Returns for periods greater than one year are annualized Contact Information: Illinois Police Officers’ Pension Investment Fund, 456 Fulton Street, Suite 402 Peoria, Illinois 61602 Phone: (309) 280-6464 Email: Info@ipopif.org Page 1 of 3 Page 16 of 40 GLEN ELLYN POLICE PENSION FUND Fund Name: IPOPIF Pool Month Ended: May 31, 2025 Market Value Summary: Unit Value Summary: Current Period Year to Date Current Period Year to Date Beginning Balance $42,149,567.97 $41,447,815.46 Beginning Units 3,518,915.737 3,512,453.656 Contributions $78,500.00 $411,800.00 Unit Purchases from Additions 6,326.768 34,124.071 Withdrawals ($63,636.00) ($318,180.00) Unit Sales from Withdrawals (5,133.622) (26,468.844) Transfers In/Out $0.00 $0.00 Ending Units 3,520,108.883 3,520,108.883 Income $20,645.57 $91,412.79 Administrative Expense ($794.79) ($3,493.99) Period Beginning Net Asset Value per Unit $11.977999 $11.800246 Investment Expense ($814.23) ($3,108.76) Period Ending Net Asset Value per Unit $12.407761 $12.407761 Investment Manager Fees ($3,856.28) ($8,951.28) IFA Loan Repayment $0.00 $0.00 Adjustment $0.00 $0.00 Realized Gain/Loss $140,805.87 $185,669.63 Unrealized Gain/Loss $1,356,251.51 $1,873,705.77 Ending Balance $43,676,669.62 $43,676,669.62 Performance Summary: GLEN ELLYN POLICE PENSION FUND Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: 3.59% 4.68% 5.15% 10.50% 7.75% N/A N/A 6.03% 04/06/2022 Returns for periods greater than one year are annualized Contact Information: Illinois Police Officers’ Pension Investment Fund, 456 Fulton Street, Suite 402 Peoria, Illinois 61602 Phone: (309) 280-6464 Email: Info@ipopif.org Page 2 of 3 Page 17 of 40 Statement of Transaction Detail for the Month Ending 05/31/2025 GLEN ELLYN POLICE PENSION FUND Trade Date Settle Date Description Amount Unit Value Units IPOPIF Pool 05/20/2025 05/21/2025 Redemptions (63,636.00) 12.395926 (5,133.6221) 05/29/2025 05/30/2025 Contribution 78,500.00 12.407599 6,326.7680 Page 3 of 3 Page 18 of 40  May 2025 Statement Supplement Cash Flows Period Contributions Withdrawals May 2025 $46 million $64 million CY 2025 $262 million $309 million Expenses Paid Administrative Investment Direct Investment Period Expenses Expenses Manager Fees 5/1/2025 $241,587.91 $247,497.71 $1,172,167.58 CY 2025 $1,064,613.23 $947,058.17 $2,725,760.48 • Expenses are paid from the IPOPIF Pool and allocated proportionately by member value. • Investment expenses exclude investment manager fees. • Direct Investment Manager Fee includes those fees invoiced and paid by IPOPIF. Other investment manager fees are tracked separately and reported to the Board and disclosed in the Fund’s Annual Comprehensive Financial Report. Investment Pool Details Date Units Value Unit Price 4/30/2025 1,069,621,897.0825 12,811,929,646.81 11.977999 5/31/2025 1,068,161,285.4171 13,253,489,912.96 12.407761 A spreadsheet with complete unit and expense detail history is linked on the Article 3 Fund Reports page as IPOPIF Unit and Expense Information.xlsx. NAV and Receivable Calculations Under Development The IPOPIF AR 2022-01 Valuation and Cost Rule.pdf, stipulates that subsequent to transfer of investment assets from all Article 3 Funds, the Net Asset Value (NAV) for each Participating Police Pension Fund will include a final true-up allocation of all costs paid using funds from the total consolidated IPOPIF investment portfolio for the period January 1, 2023, through December 31, 2024, and all loan payments made to the Illinois Finance Authority subsequent to January 1, 2023. These adjustments are expected to be completed by the end of the second quarter of 2025. Resources • Monthly statement overview: Link to Statement Overview • Monthly financial reports: https://www.ipopif.org/reports/monthly-financial-reports/ • Monthly and quarterly investment reports: https://www.ipopif.org/reports/investment- reports/ • IPOPIF Board Meeting Calendar: https://www.ipopif.org/meetings/calendar/ Illinois Police Officers’ Pension Investment Fund 309-280-6464 456 Fulton Street, Suite 402 info@ipopif.org Peoria, Illinois 61602 Page 19 of 40 Page 20 of 40 Page 21 of 40 Page 22 of 40  2025 IPFA FALL PENSION SEMINAR Friday November 7, 2025 Red Shift Empress Banquets 200 East Lake Street Addison, IL 60101 630-279-5900 IN-PERSON SEMINAR REGISTRATION FORM (please print or type) SEMINAR FEES: IPFA Members: $ 230.00 Non - Members: $ 320.00 Walk-In Re Avoid the walk-in surcharge register on or before Monday, November 3, 2025 Registration opens at 07:00, ev First Name: Last Name: e-mail Address: Mem TOTAL CHECK on or before ipfa@aol.com The Illinois Pension Statute requires continuing education for all pension board trustees. This seminar pro For IPFA Office Use: Date: ___________ Check #: ___________ Amount: _____________ Payer: _______________ _________________________________________________________________________ Page 23 of 40 | | | | | Page 24 of 40 Page 25 of 40 Page 26 of 40 Page 27 of 40  Glen Ellyn Police Pension Board Meeting 7/16/2025 4:30 PM 535 Duane Street Department: Finance Glen Ellyn, IL 60137 Department Head: Category: Personnel Prepared By: AGENDA ITEM (ID # 2025-593) DOC ID: 2025-593 Withdrawal From Fund - John Murray, Alexandra Bacza, Nancy Salgado Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: Page 28 of 40  Glen Ellyn Police Pension Meeting 7/16/2025 4:30 PM Board Department: Finance 535 Duane Street Department Head: Patrick Brankin Glen Ellyn, IL 60137 Category: Personnel Prepared By: Patrick Brankin AGENDA ITEM (ID DOC ID: 2025-604 # 2025-604) Application for membership - Gabriel Leon Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: 1. Gabriel new member Page 29 of 40 Page 30 of 40  Volume 26, Issue 3, July 2025 Legal and Legislative Update 1 Pension Board s Salary Determination Overturned by Multiple Courts 3 Firefighter Line of Duty for Hearing Loss Remanded to Board and Affirmed 4 Court Retains Jurisdiction to Enter Modified QILDRO 5 Police Yoga Does Not Constitute an Act of Duty 6 Who Stole My Candy? Candy Company Finds Data Breaches on the Rise: Protect Your Data 8 Line of Dity Disability Awarded Despite Two IME Physicians Finding Not Disabled 9 Suggested Agenda Items for October 10 RDL News Page 31 of 40 Page 32 of 40 Page 33 of 40 Court Retains Jurisdiction to Enter Modified QILDRO In re Marriage of Wheelock, 2025 IL App (2d) 240571-U In a divorce proceeding involving a member of an benefit must be allocated using a statutory creature Qualified Illinois Domestic Relations Administration of QILDROs is a particularly cumbersome undertaking for both pension funds charged with their implementation as well as divorcing parties often faced with the difficult task of allocating both future pension benefits and properly entering the necessary orders in the underlying divorce matter. This case arose from confusion over the parties understanding of their marital settlement agreement (MSA) and the pension allocation that was to result. Under the MSA, the firefighter divorcing in this case was required to execute a QILDRO transferring 50% of his pension to the ex- spouse (alternate payee) from the date of marriage to the date of divorce. Over two years passed before a QILDRO was entered. The QILDRO Page 34 of 40 provided a monthly amount to the alternate payee the QILDRO into line with the MSA and Hunt and further ordered the alternate payee would be formula. entitled to $20,990.59 of any refund due to the member when payable. What lessons can pension funds take from this case? First, QILDROs are technically complex, The member retired and the alternate payee began and a fund should be careful to adhere to the receiving monthly payments pursuant to the QILDRO. Less than a year after entry of the perspective, this means the role of the fund is only QILDRO, the member filed a motion asking the to provide the demographic data required and court to correct the QILDRO to reflect payments ensure any QILDRO entered conforms to the would cease to the alternate payee upon death of statutory format. QILDROs must also be formally the member or upon payments totaling $20,990.59, approved by the pension fund. Funds should not whichever occurred first. It was his position this is give advice or perform calculations for the parties what was contemplated by the MSA. The alternate under any circumstances. As was the case here, the payee disagreed, and the court entered a new pension fund can sometimes find themselves in the QILDRO granting her request for an increase in the middle of two divorcing parties with different monthly benefit amount. interpretations of the same order. It is therefore imperative that if your fund has any questions about On appeal, the Court surveyed the two most administration or QILDRO requirements, please common ways by which pension benefits are contact your fund attorney. - present value of the pension plan to be awarded to the member. The other party is then given other marital property to offset the anticipated pension award. The Court Gonzales v. Ret. Bd. of Policemen's Annuity & noted this method is often not used because of the Benefit Fund of City of Chicago, 2025 IL App (1st) difficulty in valuing a pension benefit not currently 242166-U being received. The more common method is the Hunt Robin Gonzales, a Chicago Police Department jurisdiction and divides the pension once it patrol officer, was injured while participating in becomes payable. In either event, a trial court reserves jurisdiction to amend any QILDRO where necessary to enforce the terms of the dissolution (or but was denied by the Retirement Board of the MSA) as written. and Benefit Fund of the City In this case, the Appellate Court found the Officer Gonzales an ordinary disability pension, judgment of dissolution did not specify the manner by which the pension benefits were to be divided. Rather, it only directed the alternate payee would receive 50% of the material portion of the pension without specifying the amounts or incorporating a ny act QILDRO setting forth the allocation method. As a of police duty inherently involving special risk, not result, the Court retained jurisdiction to enter ordinarily assumed by a citizen in the ordinary amended QILDROs to conform with the MSA. It walks of life, imposed on a policeman by the found the earlier QILDRO did not conform to the statutes of this State or by the ordinances or police MSA inasmuch as it had allocated less than 50% of regulations of the city in which this Article is in the marital portion to the alternate payee using the effect or by a special assignment; or any act of Hunt formula. As a result, the trial court properly heroism performed in the city having for its direct allowed entry of a new QILDRO awarding a purpose the saving of the life or property of a significant increase to the alternate payee to bring person other than the policeman. - Page 35 of 40 113. While this definition is found in Article 5 of Further, the First District Appellate Court held the the Pension Code, it is also applied to Article 3. because it was mandatory under a federal consent During decree and CPD Special Order. Gonzales attempted Training to equate the training to patrol duties, arguing she classroom instruction and physical training, was acting in the capacity of a patrol officer consisting of stretching, yoga, and other physical because the session included training de-escalation movements. During physical training, Officer and other techniques for handling crisis situations Gonzales experienced pain in her lower back and while on patrol. the discontinued the exercises. She was later diagnosed proper focus for an act of duty analysis is the with multiple conditions in her lumbar spine. activities that the officer is engaged in at the time he or she is injured. Officer Gonzales applied for a duty disability pension. opined Gonzales Gonzales was disabled as a result of the analysis for police disability cases is the capacity the officer was working in at the time of injury. The fact that an activity is mandatory is insufficient to During the hearing, medical and CPD records were admitted. Gonzales testified the training program boards should be careful they focus on the capacity the police profession -escalation the officer worked in at the time of injury. techniques and techniques for assessing situations to avoid excessive use of force. However, the Who Stole My Candy? Candy Company officers, including Gonzales, did not roleplay law Finds Data Breaches on the Rise: Protect enforcement scenarios. Your Data One of the trustees testified he previously attended Olson v. Ferrara Candy Co., 2025 IL App (1st) the wellness training. He testified the training 241126 covers finance, nutrition, health, and Officers at the Plaintiffs filed a data breach class-action complaint training session were informed that anyone against their former employer, Ferrara Candy pregnant, injured, or on light duty did not have to Company. They alleged Ferrara failed to use participate in yoga. The trustee opted out of yoga reasonable means to protect the personally because of a back injury he previously sustained. identifiable information (i.e., social security In affirming the decision of the Board, Appellate routing numbers, etc.) of their former and current Court noted testimony demonstrated the training employees from unauthorized access by an session was designed to teach the unknown third party. and do some breathing and physical techniques in order to calm [themselves] and live a healthier In October 2021, Defendant posted a notice of data This was corroborated by Gonzales, who breach to their website. It informed the impacted testified the training did not involve roleplaying individuals of the breach, encouraged said law enforcement scenarios. The Appellate Court individuals to remain vigilant by reviewing their it is apparent that Gonzales was injured in the account statements and monitoring their free credit capacity of an individual reports, and provided impacted individuals with seeking to calm herself and live a healthier free credit monitoring. Thus, Gonzales was not injured as a Wesson alleged he suffered fraudulent charges on his credit union account. He further alleged he was not aware of any other data breaches aside from Page 36 of 40  sensitive, such that there is a high risk of identity his credit union checking account or debit card theft or fraud. The Court held Plaintiffs sufficiently information. alleged an imminent and substantial risk of future stated only Chase account information misuse of their PII. It highlighted the complaint was accessed by the unknown third party. alleged: (1) the thieves intentionally stole the information; (2) some of the stolen information was Defendant filed multiple complaints that were already misused; and (3) the information stolen was dismissed. The subject of this is appeal is highly sensitive, including social security numbers Defendant third amended complaint, which and financial account information. asserted claims on behalf of themselves and the putative class for (1) negligence, (2) negligence per Further, the Court noted the complaint must also se, (3) breach of implied contract, (4) unjust enrichment, and (5) violation of the Consumer exposure to the alleged risk of future harm to Fraud Act. establish standing to pursue damages. That said, Plaintiffs cannot manufacture standing by incurring Olson alleged he expended effort monitoring his costs in anticipation of non-imminent harm. The account, suffered anxiety about the data breach, Court held Plaintiffs alleged separate concrete sustained damages to and diminution in the value harm caused by exposure to the risk of future harm of his PII, and remained at an increased risk of based on their allegations of their lost time fraud, identity theft, and misuse. Wesson alleged monitoring their accounts to protect against the same injuries as Olson, but also alleged identity theft and fraud. Likewise, the Court held fraudulent charges were made to his credit union s expenses for credit monitoring services account. Wesson also alleged that sometime after constitute another concrete injury. receiving notice of the data breach, he bought a credit monitoring service, for which he paid $24.99 The Court held Plaintiffs alleged sufficient facts to monthly for several months and then $4.99 monthly overcome dismissal regarding whether the breach for a couple of months. fact Defendant did not maintain his credit union The Appellate Court first addressed the issue of account information, because the fraudulent standing. charges occurred two months after the breach, and Defendant Wesson was unaware of another breach of his data. argued Plaintiffs lacked standing. Regarding Further, the Court noted cybercriminals were able Wesson, the Court held the complaint sufficiently to cross- alleged a concrete injury based on the allegation PII that could be used for further identity theft and that the data breach resulted in the misuse of his PII fraud. by an unauthorized third party who made charges to his credit union account. Regarding Olson, the Defendant argued Plaintiffs failed to adequately Court noted he did not allege actual misuse. It, plead proximate cause, did not state an injury nonetheless, held Olson alleged a concrete injury sufficient to support a negligence claim, and that based on an imminent, certainly impending, or a the Moorman doctrine foreclosed their negligence substantial risk of future misuse of his PII and claim. The Court disagreed. First, it held Plaintiffs concrete harm caused by exposure to this risk. adequate cybersecurity may lead to data breaches. In determining when the risk of future misuse of PII Second, the Court noted Wesson alleged a following a data breach is imminent and sufficient injury based on the fraudulent charges to substantial, relevant considerations include: (1) his card. Plaintiffs both also alleged they spent time whether the PII was exposed as the result of a and resources to protect themselves against fraud targeted attempt to obtain that data; (2) whether any and identity theft after the breach. Finally, the portion of the stolen or accessed PII has already Court held the Moorman doctrine did not apply been misused; and (3) whether the PII at issue is because, in the context of the service industry, it Page 37 of 40 only applies where the duty of the party to perform the service is defined by a contract executed with the client. The Court held Wesson pleaded sufficient facts Defendant breached an implied contract, which was created through the actions and conduct of the parties instead of an express agreement. Specifically, Wesson was required to provide his PII to Defendant in reliance on the promises made in its privacy policy. It was also implied Defendant PPI from unauthorized disclosure. argument Wesson has not alleged an actual economic injury under the Consumer Fraud Act, holding he incurred costs for monthly credit monitoring. adequate cybersecurity measures and insurance to avoid data breaches. While it is difficult to plead damages in a data breach case, Courts are willing to do so when there is some form of actual harm, even if remote. ensure they have adequate cyber security measures in place to avoid data breaches. Likewise, they should ensure their vendors safeguard all information shared with them by the Pension Board. Page 38 of 40 Suggested Agenda Items for October (or 4th Quarter) Adoption of recommended tax levy from actuarial valuation and forward request to Municipality. Adoption of municipal compliance report and forward to Municipality. Schedule next calendar year quarterly meeting dates/times. Deadline for filing independent audit report with DOI. Deadline for filing of DOI annual report. (October 31st) Page 39 of 40  REIMER DOBROVOLNY & LABARDI PC NEWS May 2, 2025, RDL partner Brian LaBardi attended and presented at the IPFA Spring Pension Conference in Addison. May 7-9, 2025, RDL partners Richard Reimer and Vince Mancini presented at the IPPFA Spring Conference in Galena. October 1-2, 2025, RDL attorneys will attend and present at the IPPFA Mid-American Pension Conference in Oak Brook. November 7, 2025, RDL partner Brian LaBardi will attend and present at the IPFA Fall Pension Conference in Addison. Legal and Legislative Update Volume 26, Issue 3, July 2025 This publication constitutes advertising material. Information contained herein should not be considered legal advice. Legal and Legislative Update is published periodically. Questions may be directed to: REIMER DOBROVOLNY & LABARDI PC 15 Spinning Wheel Road, Suite 310, Hinsdale, IL 60521 (630) 654-9547 Fax (630) 654-9676 www.rdlaborlawpc.com Unauthorized reproduction prohibited. All rights reserved. Page 40 of 40