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2025-08-04 - Firefighter Pension Board - Agenda PacketNOTICE OF A REGULAR MEETING OF THE BUFFALO GROVE FIREFIGHTERS’ PENSION FUND BOARD OF TRUSTEES The Buffalo Grove Firefighters’ Pension Fund Board of Trustees will conduct a regular meeting on Monday, August 4, 2025 at 8:30 a.m. in Village Hall located at 50 Raupp Boulevard, Buffalo Grove, Illinois 60089, for the purposes set forth in the following agenda: AGENDA 1. Call to Order 2. Roll Call 3. Approval of Remote Attendance and Full Participation by Certain Trustees (if any) 4. Public Comment 5. Approval of Meeting Minutes a.) May 12, 2025 Regular Meeting b.) Semi-Annual Review of Closed Session Meeting Minutes 6. Financial/Investment Reports a.) Monthly Financial Reports from Lauterbach & Amen (April, May and June 2025) b.) Presentation and Approval of Bills c.) Additional Bills, if any d.) Review – Cash Balances of Local Accounts i. BMO Bank Statement and Current Balance Status ii. Schwab Statement, Current Balance Status and Quarterly Report – Sawyer Falduto e.) Review of Cash Projections and Cash Needs f.) Review/Approval – FPIF Statements of Results (April, May and June 2025) g.) Review/Approval – FPIF Monthly Investment Summaries (April, May and June 2025) 7. Communications and Reports a.) Affidavits of Continued Eligibility b.) Active Member File Maintenance 8. Applications for Membership/Withdrawals from Fund/Service Purchase a.) Applications for Membership – Tim Heatley, Patrick Murray and Nick Wolski b.) Status of Baniqued Combined Creditable Service/Reciprocity 9. Applications for Retirement/Disability Benefits/QILDROs a.) Status of Application for Disability Benefits Process – Steven Dorsey b.) Status of Qualified Illinois Domestic Relations Orders (QILDROs) i. Status of Dorsey QILDRO ii. Status of Gatto QILDRO iii. Status of Olsen QILDRO c.) Annual Independent Medical Examination – William Simmons 10. Old Business a.) Review/Approve – RFQ for Insurance Brokers b.) Status of Shared Cloud Site/Dedicated Pension Trustee Emails Project c.) Review/Approve Annual Audit d.) Discussion/Possible Action – Active Member Workshop 11. New Business a.) Review/Approve – Actuarial Valuation and Tax Levy Request b.) Review/Adopt – Municipal Compliance Report c.) Board Officer Elections – President and Secretary d.) FOIA Officer and OMA Designee 12. Attorney’s Report – Ottosen a.) Pension Insights for Third Quarter 2025 (Investing in Members) b.) Fiduciary Insights (July 2025) (Documenting Processes) c.) IAFPD Fire Call Pension Pointers Spring 2025 (Social Security Fairness Act) d.) IAFPD Conference Presentations (June 2025) 13. Trustee Training Updates a.) Approval of Trustee Training Registration Fees and Reimbursable Expenses b.) Acknowledgement of Training Time from Meeting c.) Certification of Trustee Training Hours 14. Closed Session, if needed 15. Adjournment 1 of 246 MINUTES OF A REGULAR MEETING OF THE BUFFALO GROVE FIREFIGHTERS’ PENSION FUND BOARD OF TRUSTEES MAY 12, 2025 A regular meeting of the Buffalo Grove Firefighters’ Pension Fund Board of Trustees was held on Monday, May 12, 2025 at 8:30 a.m. in the Buffalo Grove Village Hall located at 50 Raupp Boulevard, Buffalo Grove, Illinois 60089, pursuant to notice. CALL TO ORDER: Secretary Josh Himmelspach called the meeting to order at 8:31 a.m. ROLL CALL: PRESENT: Trustees Josh Himmelspach, Thomas Gough, Larry Stanley and Chris Black ABSENT: Trustee Dan Pasquarella ALSO PRESENT: Attorney Carolyn Clifford, Ottosen; Ed Lavin, Sawyer Falduto Asset Management, LLC (SFAM); Molly Barker and Anthony Gedvilas (arrived at 8:41 a.m.), Lauterbach & Amen (L&A); Fire Chief Larry Kane, Buffalo Grove Fire Department; Trustee Denise Bocek, Village of Buffalo Grove APPROVAL OF REMOTE ATTENDANCE AND FULL PARTICIPATION BY CERTAIN TRUSTEES (IF ANY): The Board noted that there were no Trustees attending remotely. PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: February 3, 2025 Regular Meeting: The Board reviewed the February 3, 2025, regular meeting minutes. A motion was made by Trustee Stanley and seconded by Trustee Gough to approve the February 3, 2025, regular meeting minutes as written. Motion carried unanimously by voice vote. FINANCIAL/INVESTMENT REPORTS: Monthly Financial Reports from Lauterbach & Amen (December 2024, January, February, March and April 2025): The Board reviewed the Monthly Financial Report for the twelve-month period ending December 31, 2024, prepared by L&A. As of December 31, 2024, the net position held in trust for pension benefits is $87,476,412.16 for a change in position of $6,566,711.40. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal, Quarterly Deduction Report, and Quarterly Transfer Report. The Board also reviewed the Monthly Financial Report for the one-month period ending January 31, 2025, prepared by L&A. As of January 31, 2025, the net position held in trust for pension benefits is $89,165,906.14 for a change in position of $1,689,493.98. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal, Quarterly Deduction Report, and Quarterly Transfer Report. The Board also reviewed the Monthly Financial Report for the two-month period ending February 28, 2025, prepared by L&A. As of February 28, 2025, the net position held in trust for pension benefits is $88,960,865.86 for a change in position of $1,498,828.85. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal, Quarterly Deduction Report, and Quarterly Transfer Report. The Board also reviewed the Monthly Financial Report for the three-month period ending March 31, 2025, prepared by L&A. As of March 31, 2025, the net position held in trust for pension benefits is $86,787,025.03 for a change in position of ($675,011.98). The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal, Quarterly Deduction Report, Quarterly Transfer Report, and the Quarterly Disbursement Report for the period December 1, 2024, through March 31, 2025, for total disbursements of $89,075.95. The ending balance in the BMO account for this period is $12,304.60, which is above the Board’s target cash balance ($10,000) but below the transfer threshold ($25,000) set by the Board for this account. 2 of 246 Buffalo Grove Firefighters’ Pension Fund Meeting Minutes – May 12, 2025 Page 2 of 5 Mr. Gedvilas arrived at 8:41 a.m. A motion was made by Trustee Stanley and seconded by Trustee Black to accept the Monthly Financial Reports as presented and to approve the disbursements shown on the Quarterly Disbursement Report in the amount of $89,075.95. Motion carried by roll call vote. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella Additional Bills, if any: There were no additional bills presented for approval. Review – Cash Balances of Local Accounts – BMO Bank Statement and Current Balance Status: The Board reviewed the current balance of the BMO Bank operating account and discussed upcoming cash needs. No changes are needed at this time. Review of Cash Projections and Cash Needs: The Board discussed the current cash projections and cash needs and determined that no action is needed at this time. Schwab Statement, Current Balance Status and Quarterly Report – Sawyer Falduto: Mr. Lavin presented the Investment Performance Report for the period ending March 31, 2025. As of March 31, 2025, the ending market value held in the Schwab money market account is $207,683, which is above the Board’s target cash balance ($100,000) and above the transfer threshold ($200,000) set by the Board for this account. Review/Approval – FPIF Statements of Results (January, February, March and April 2025): The Board reviewed the FPIF Statements of Results for the periods January 31, 2025, February 28, 2025, and March 31, 2025. As of March 31, 2025, the Fund’s ending Net Asset Value (NAV) in FPIF is $86,578,885.46 which is 0.91% ownership in FPIF. The calendar year-to-date net return of the Fund’s total assets is 0.16% and the one-month net return for March 2025 is (2.28%). Review/Approval – FPIF Lag Statement of Results (December 2024): The Board reviewed the FPIF Lag Statement of Results for the period December 31, 2024. As of December 31, 2024, the Fund’s adjusted ending Net Asset Value (NAV) in FPIF is $87,385,050.98 which is 0.92% ownership in FPIF. The calendar year-to-date adjusted net return of the Fund’s total assets is 10.94%. Review/Approval – FPIF Monthly Investment Summaries (January, February, and March 2025): The Board reviewed the FPIF Monthly Investments Summaries for the periods January 31, 2025, February 28, 2025, and March 31, 2025. As of March 31, 2025, the one-month total net return is (2.3%) vs. the FPIF policy benchmark of (2.1%) and the calendar year-to-date total net return is 0.2% vs. the FPIF policy benchmark of 1.7% for an ending market value of $9,492,295,748. The current asset allocation is as follows: Equity at 64.1%, Fixed Income at 29.4%, Alternatives at 6.2%, Cash at 0.4% and Transition and Member Funds at 0.0%. A motion was made by Trustee Gough and seconded by Trustee Stanley to accept the Sawyer Falduto Quarterly Report, FPIF Statements of Results and FPIF Monthly Investments Summaries as presented. Motion carried by roll call vote. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A informed the Board that the third request for Affidavits of Continued Eligibility were mailed to the outstanding pensioners via certified mail on March 14, 2025 with a due date of March 28, 2025. To date, one affidavit remains outstanding. L&A will follow up with the outstanding pensioner and updates will be provided to the Board as they become available. 3 of 246 Buffalo Grove Firefighters’ Pension Fund Meeting Minutes – May 12, 2025 Page 3 of 5 Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest were due by May 1, 2025. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND/SERVICE PURCHASE: Status of Baniqued Combined Creditable Service/Reciprocity: The Board discussed the potential combination of creditable service with Barrington FPF under reciprocity for Dustin Baniqued and noted that no request has been submitted for calculation. Further discussion will be held at the next regular meeting. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS/QILDROS: Deceased Pensioner – Phillip Barry/Approve Surviving Spouse Benefits – Cynthia Barry: The Board noted that Phillip Barry passed away on January 27, 2025. The Board reviewed the surviving spouse benefit calculation for Cynthia Barry with an effective date of January 28, 2025 for a monthly benefit of $3,883.07 with no additional increases. A motion was made by Trustee Gough and seconded by Trustee Stanley to terminate the retirement benefit of Phillip Barry and approve the surviving spouse benefit of Cynthia Barry calculated by L&A. Motion carried by roll call vote. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella Status of Application for Disability Benefits Process – Steven Dorsey: Attorney Clifford apprised the Board that the independent medical examinations for Steven Dorsey will be scheduled upon receipt of the necessary additional medical records. Further discussion will be held at the next regular meeting. Status of Qualified Illinois Domestic Relations Orders (QILDROs) – Dorsey QILDRO: Attorney Clifford apprised the Board that there are no updates on the status of the Dorsey QILDRO. Updates will be provided to the Board as they become available. Status of Jason QILDRO: The Board noted the QILDRO Order, Calculation Order, Consent to Issuance and $50 processing fee for John Jason have been received and reviewed by the Board Attorney with payments to commence with the May 2025 payroll cycle. A motion was made by Trustee Gough and seconded by Trustee Black to accept the QILDRO documents and approve payment to the alternate payee as discussed. Motion carried by roll call vote. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella Status of Olsen QILDRO: Attorney Clifford apprised the Board that there are no updates on the status of the Olsen QILDRO. Updates will be provided to the Board as they become available. Status of Gatto QILDRO: Attorney Clifford apprised the Board that there are no updates on the status of the Gatto QILDRO. Updates will be provided to the Board as they become available. OLD BUSINESS: Review/Approve – RFQ for Insurance Brokers: The Board discussed submitting a Request for Quotes to potential fiduciary liability insurance brokers. A motion was made by Trustee Gough and seconded by Trustee Himmelspach to invite Cook Castle Associates, LLC to present at the next regular meeting for fiduciary liability insurance brokerage services. Motion carried unanimously by voice vote. Further discussion will be held at the next regular meeting. Status of Shared Cloud Site/Dedicated Pension Trustee Emails Project: The Board discussed setting up a Board share cloud website as well as ordering tablets for each of the trustees. Further discussion will be held at the next regular meeting. 4 of 246 Buffalo Grove Firefighters’ Pension Fund Meeting Minutes – May 12, 2025 Page 4 of 5 NEW BUSINESS: Review Preliminary Actuarial Valuation: The Board reviewed the preliminary Actuarial Valuation prepared by L&A. The final report will be reviewed and a tax levy request made to the Village by the Board at the next regular meeting. Review/Approve IDOI Annual Statement: The Board noted that the IDOI Annual Statement and interrogatory statement are in draft form, have been reviewed by the Board, and the final reports will be sent to the Board upon completion. A motion was made by Trustee Stanley and seconded by Trustee Gough to approve the filing of the IDOI Annual Statement by the June 30, 2025, deadline. Motion carried by roll call vote. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella Review/Approve Annual Audit: The Board discussed the annual audit for FYE December 31, 2024, which is still in process. Further discussion will be held at the next regular meeting. Discussion/Possible Action – Active Member Workshop: The Board discussed engaging L&A to host an active member workshop for the members of the Buffalo Grove Fire Department. A motion was made by Trustee Gough and seconded by Trustee Stanley to engage L&A in the amount of $6,500 for a three-day in-person workshop. Motion carried by roll call vote. Further discussion will be held at the next regular meeting. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella BMO Bank Signature Card and Resolution Update: L&A provided the Board with the necessary forms to update the signers on the BMO Bank account with the current Board members and Village finance director. A motion was made by Trustee Himmelspach and seconded by Trustee Stanley to designate Trustees Pasquarella, Himmelspach and Black as signers on the BMO Bank account, to align with the Board’s Resolution No. 2020-1, A Resolution Establishing Signatory Authority, that was approved on June, 3, 2020. Motion carried by roll call vote. AYES: Trustees Himmelspach, Gough, Stanley and Black NAYS: None ABSENT: Trustee Pasquarella ATTORNEY’S REPORT – OTTOSEN: Pension Insights (Second Quarter 2025): The Board was provided the Second Quarter 2025 Pension Insights on new legislation prepared by Ottosen, which Attorney Clifford reviewed with the Board. Fiduciary Insights (March 2025) and IAFPD Fire Call Pension Pointers (Winter 2025): Attorney Clifford reviewed with the Board the following training presentations: Fiduciary Insights (March 2025) and IAFPD Fire Call Pension Pointers (Winter 2025). TRUSTEE TRAINING UPDATES: Approval of Trustee Training Registration Fees and Reimbursable Expenses: There were no trustee registration fees or reimbursable expenses presented for approval. Acknowledgement of Training Time from Meeting: The Board acknowledged one hour of Trustee Training from the May 12, 2025, regular meeting. Certification of Trustee Training Hours: This item was not discussed. CLOSED SESSION, IF NEEDED: There was no need for closed session. 5 of 246 Buffalo Grove Firefighters’ Pension Fund Meeting Minutes – May 12, 2025 Page 5 of 5 ADJOURNMENT: A motion was made by Trustee Stanley and seconded by Trustee Gough to adjourn the meeting at 10:16 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for August 4, 2025, at 8:30 a.m. ____________________________________________________ Board Secretary Minutes approved by the Board of Trustees on ____________________________ Minutes prepared by Molly Barker, Professional Services Administrator, Lauterbach & Amen 6 of 246 Buffalo Grove FPF / General / Closed Meeting Minutes Chart /293405 Buffalo Grove Firefighters' Pension Fund – Inventory of Closed Session Minutes Date of closed meeting Subject of closed meeting Date of Board approval of written minutes Date the recording eligible for destruction (only after 1/1/04) Date of Board approval of recording destruction Most current disposition of written minutes Most recent review of closed session meeting minutes December 5, 2002 Deau Disability Matter 12/12/2002 N/A N/A Closed 02/03/2025 December 12, 2002 Deau Disability Matter N/A N/A Closed 02/03/2025 December 9, 2004 Calibraro Disability Matter 12/09/2004 June 9, 2006 11/8/18 Closed 02/03/2025 June 23, 2005 Newkirk Disability Matter 07/23/2004 December 23, 2006 11/8/18 Closed 02/03/2025 September 29, 2005 Newkirk Disability Matter 09/29/2005 March 29, 2007 11/8/18 Closed 02/03/2025 April 11, 2012 Sashko Pensionable Salary Matter 04/11/2012 October 11, 2013 11/8/18 Closed 02/03/2025 7 of 246 Buffalo Grove FPF / General / Closed Meeting Minutes Chart /293405 Date of closed meeting Subject of closed meeting Date of Board approval of written minutes Date the recording eligible for destruction (only after 1/1/04) Date of Board approval of recording destruction Most current disposition of written minutes Most recent review of closed session meeting minutes February 1, 2013 Gough Disability Matter 08/01/2014 August 1, 2014 11/8/18 Closed 02/03/2025 October 20, 2014 Paleka Disability Matter 04/20/2016 April 20, 2016 11/8/18 Closed 02/03/2025 March 23, 2018 Hauber Surviving Spouse Matter 09/23/2019 September 23, 2019 (NOTE: if appeal has ended) 07/26/22 Closed 02/03/2025 8 of 246 Monthly Financial Report For the Month Ended April 30, 2025 Prepared By 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS 60563 PHONE 630.393.1483 • FAX 630.393.2516 www.lauterbachamen.com 9 of 246 Buffalo Grove Firefighters' Pension Fund Table of Contents Starting on Page Accountants' Compilation Report................................................................................................1-1 Financial Statements Statement of Net Position - Modified Cash Basis................................................................... 2-1 Statement of Changes in Net Position - Modified Cash Basis................................................ 2-2 Other Supplementary Information Pooled Investment NAV vs Accumulated Net Investments Graph..........................................3-1 Cash Analysis Report............................................................................................................... 4-1 Cash Transfer to/from Consolidated Fund Graph.................................................................... 5-1 Revenue Report....................................................................................................................... 6-1 Cash Analysis Summary Graph............................................................................................... 7-1 Expense Report........................................................................................................................ 8-1 Pension Benefits and Expenses Graph.................................................................................... 9-1 Member Contribution Report.................................................................................................. 10-1 Payroll Batch Report............................................................................................................... 11-1 Quarterly Deduction Report.................................................................................................... 12-1 Quarterly Transfer Report........................................................................................................ 13-1 Quarterly Disbursement Report............................................................................................... 14-1 10 of 246 11 of 246 May 29, 2025 Buffalo Grove Firefighters' Pension Fund 1051 Highland Grove Drive Buffalo Grove, IL 60089 To Members of the Pension Board: Management is responsible for the accompanying interim financial statements of the Buffalo Grove Firefighters'Pension Fund which comprise the statement of net position -modified cash basis as of April 30,2025 and the related statement of changes in net position -modified cash basis for the four months then ended in accordance with the modified cash basis of accounting and for determining that the modified cash basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. We did not audit or review the interim financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion,nor provide any form of assurance on these interim financial statements. The interim financial statements are prepared in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Management has elected to omit substantially all of the disclosures ordinarily included in interim financial statements prepared in accordance with the modified cash basis of accounting.If the omitted disclosures were included in the interim financial statements and other supplementary information, they might influence the user's conclusions about the Pension Fund's assets, liabilities, net position, additions and deductions. Accordingly, the interim financial statements and other supplementary information are not designed for those who are not informed about such matters. Other Matter The other supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. The other supplementary information was subject to our compilation engagement. We have not audited or reviewed the other supplementary information nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion,nor provide any form of assurance on the other supplementary information. Cordially, Lauterbach & Amen, LLP Lauterbach & Amen, LLP 1-1 12 of 246 13 of 246 Assets Cash and Cash Equivalents 10,002.27$ Investments at Fair Market Value Money Market Mutual Funds 159,395.08 Pooled Investments 87,276,450.70 Total Cash and Investments 87,445,848.05 Total Assets 87,445,848.05 Liabilities Expenses Due/Unpaid 9,440.00 Total Liabilities 9,440.00 Net Position Held in Trust for Pension Benefits 87,436,408.05 Buffalo Grove Firefighters' Pension Fund Statement of Net Position - Modified Cash Basis As of April 30, 2025 See Accountants' Compilation Report 2-1 14 of 246 Additions Contributions - Municipal 334,905.50$ Contributions - Members 215,677.18 Total Contributions 550,582.68 Investment Income Interest and Dividends Earned 524,857.12 Net Change in Fair Value 728,494.98 Total Investment Income 1,253,352.10 Less Investment Expense (56,774.40) Net Investment Income 1,196,577.70 Total Additions 1,747,160.38 Deductions Administration 27,393.03 Pension Benefits and Refunds Pension Benefits 1,745,396.31 Refunds 0.00 Total Deductions 1,772,789.34 Change in Position (25,628.96) Net Position Held in Trust for Pension Benefits Beginning of Year 87,462,037.01 End of Period 87,436,408.05 Buffalo Grove Firefighters' Pension Fund Statement of Changes in Net Position - Modified Cash Basis For the Four Months Ended April 30, 2025 See Accountants' Compilation Report 2-2 15 of 246 16 of 246 17 of 246 05/31/24 06/30/24 07/31/24 08/31/24 09/30/24 10/31/24 11/30/24 12/31/24 01/31/25 02/28/25 03/31/25 04/30/25 Financial Institutions BMO Bank - CK 10,002$ 10,079 5,351 14,400 22,459 19,304 10,017 9,977 6,767 9,954 9,896 10,002 10,002 10,079 5,351 14,400 22,459 19,304 10,017 9,977 6,767 9,954 9,896 10,002 Schwab - MM 438,319 649,597 539,587 506,444 494,070 100,000 152,483 100,769 173,389 147,377 207,683 159,395 438,319 649,597 539,587 506,444 494,070 100,000 152,483 100,769 173,389 147,377 207,683 159,395 Total 448,321 659,676 544,938 520,844 516,529 119,304 162,500 110,746 180,156 157,331 217,579 169,397 Contributions Current Tax 99,670 805,934 154,069 216,410 690,548 87,474 4,229 7,045 - 79,507 243,723 11,676 Contributions - Current Year 49,000 49,438 49,301 72,770 47,334 47,230 47,229 47,158 72,430 48,489 47,480 47,278 Contributions - Prior Year 193 - - - - - ------ Interest Received from Members 13 - - - - - ------ 148,876 855,372 203,370 289,180 737,882 134,704 51,458 54,203 72,430 127,996 291,203 58,954 Expenses Pension Benefits 412,304 412,304 413,853 414,831 414,831 436,409 420,929 421,151 432,214 432,214 439,914 441,054 Administration 21,679 4,558 24,213 21,622 23,225 16,383 12,812 29,238 15,686 9,788 42,124 16,569 433,983 416,862 438,066 436,453 438,056 452,792 433,741 450,389 447,900 442,002 482,038 457,623 Total Contributions less Expenses (285,107)438,510 (234,696) (147,273)299,826 (318,088) (382,283) (396,186) (375,470) (314,006) (190,835) (398,669) Buffalo Grove Firefighters' Pension Fund Cash Analysis Report For the Twelve Periods Ending April 30, 2025 See Accountants' Compilation Report 4-1 18 of 246 Buffalo Grove Firefighters' Pension Fund (600,000) (400,000) (200,000) - 200,000 400,000 600,000 800,000 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 Cash Transfers to/from Consolidated Fund Cash Transfers into Consolidated Fund Cash Transfers out of Consolidated Fund See Accountants' Compilation Report 5-1 19 of 246 Contributions Contributions - Municipal 41-210-00 - Current Tax 11,675.64$ 334,905.50 11,675.64 334,905.50 Contributions - Members 41-410-00 - Contributions - Current Year 47,277.99 215,677.18 47,277.99 215,677.18 Total Contributions 58,953.63 550,582.68 Investment Income Interest and Dividends 43-252-04 - Schwab - Fixed Income 441.45 1,727.87 43-800-01 - IFPIF Consolidated Pool Dividend 26,940.33 153,859.40 43-800-02 - IFPIF Consolidated Pool Interest 94,782.99 372,587.32 43-800-03 - IFPIF Contribution Interest 34.11 57.62 43-800-04 - IFPIF Consolidated Pool Derivative Income 0.00 52.45 43-800-05 - IFPIF Consolidated Pool Private Equity/Real Estate Income (133.70) (3,427.54) 122,065.18 524,857.12 Gains and Losses 44-800-01 - IFPIF Consolidated Pool - Unrealized 781,126.77 (82,550.59) 44-800-02 - IFPIF Consolidated Pool - Realized 144,860.86 811,045.57 925,987.63 728,494.98 Total Investment Income 1,048,052.81 1,253,352.10 Total Revenue 1,107,006.44 1,803,934.78 Buffalo Grove Firefighters' Pension Fund Revenue Report as of April 30, 2025 Received Received this Month this Year See Accountants' Compilation Report 6-1 20 of 246 21 of 246 Expended Expended this Month this Year Pensions and Benefits 51-020-00 - Service Pensions 386,099.94$ 1,529,251.24 51-030-00 - Non-Duty Disability Pensions 5,097.09 20,388.36 51-040-00 - Duty Disability Pensions 22,872.72 91,490.88 51-060-00 - Surviving Spouse Pensions 26,984.61 104,265.83 Total Pensions and Benefits 441,054.36 1,745,396.31 Administrative Professional Services 52-170-01 - Actuarial Services 2,460.00 2,460.00 52-170-02 - Auditing Services 0.00 3,282.50 52-170-03 - Accounting & Bookkeeping Services 1,215.00 6,330.00 52-170-05 - Legal Services 4,375.53 10,355.53 52-170-06 - PSA/Court Reporter 1,250.00 4,965.00 9,300.53 27,393.03 Investment 52-190-01 - Investment Manager/Advisor Fees 0.00 1,500.00 52-190-04 - Bank Fees 38.99 185.38 52-195-01 - Administrator Expenses (IFPIF) 0.00 (417.66) 52-195-02 - Other Fee & Expenses (IFPIF) 4,309.66 13,959.58 52-195-03 - Management Fee (IFPIF) 549.20 9,584.23 52-195-05 - Other Expenses (IFPIF) 127.29 383.26 52-195-06 - Swap Fees (IFPIF) 5.63 3,008.99 52-195-07 - Private Equity and Real Estate Fees (IFPIF) 2,237.76 28,570.62 7,268.53 56,774.40 Total Administrative 16,569.06 84,167.43 Total Expenses 457,623.42 1,829,563.74 Buffalo Grove Firefighters' Pension Fund Expense Report as of April 30, 2025 See Accountants' Compilation Report 8-1 22 of 246 Buffalo Grove Firefighters' Pension Fund - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 Service Non-Duty Disability Duty Disability Surviving Spouse Administrative Expenses 1,529,251 20,388 91,491 104,266 84,167 Pension Benefits and Expenses See Accountants' Compilation Report 9-1 23 of 246 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Baniqued, Dustin J. $39,260.30 3,459.06 0.00 0.00 42,719.36 Beck, Brian D.278,626.43 5,583.51 0.00 0.00 284,209.94 Beckman, Robert L.117,831.48 4,596.57 0.00 0.00 122,428.05 Budnik, Alec R.45,956.26 3,663.74 0.00 0.00 49,620.00 Caballero, Alfredo A.113,258.22 4,596.57 0.00 0.00 117,854.79 Carroll, James R.106,428.86 3,977.46 0.00 0.00 110,406.32 Chrencik, Brian J.32,294.00 3,225.87 0.00 0.00 35,519.87 Collins, Shawn J.237,165.40 5,869.08 0.00 0.00 243,034.48 Dalton, Kyle M.42,180.16 3,459.06 0.00 0.00 45,639.22 Dinsmore, Patrick S.220,518.82 4,072.01 0.00 0.00 224,590.83 Ditthardt, Kyle S.51,781.64 3,709.35 0.00 0.00 55,490.99 Doll, Franklin C.149,965.74 4,053.10 0.00 0.00 154,018.84 Dorsey, Steven M.222,169.79 441.94 0.00 0.00 222,611.73 Downey, Daniel J.66,023.88 4,177.37 0.00 0.00 70,201.25 Eaton, Austin R.27,460.31 3,032.35 0.00 0.00 30,492.66 Gatto, Kevin 232,499.63 4,072.01 0.00 0.00 236,571.64 Gemmel, John M.14,981.68 2,805.39 0.00 0.00 17,787.07 Gleeson, Michael T.21,552.50 2,985.63 0.00 0.00 24,538.13 Herrmann, Robert W.170,183.64 5,445.99 0.00 0.00 175,629.63 Himmelspach, Joshua R.112,606.46 4,034.19 0.00 0.00 116,640.65 Hopp, Landon S.9,573.21 2,892.87 0.00 0.00 12,466.08 Huh, Jay 87,414.64 4,037.91 0.00 0.00 91,452.55 Kane, Lawrence J.40,642.29 6,484.68 0.00 0.00 47,126.97 Kaplan, Timothy M.21,555.82 2,985.63 0.00 0.00 24,541.45 Kieras, Kamil K.3,659.45 2,439.63 0.00 0.00 6,099.08 Kiotis, Alexandra N.6,434.68 2,576.97 0.00 0.00 9,011.65 Kolder, Charles A.153,650.28 3,977.46 0.00 0.00 157,627.74 Kruse, Cody R.60,852.22 3,977.46 0.00 0.00 64,829.68 Kujawowicz, Piotr A.45,953.33 3,663.74 0.00 0.00 49,617.07 Manka, Michael J.57,215.01 3,977.46 0.00 0.00 61,192.47 McCarthy, Ryan K.112,616.92 4,034.19 0.00 0.00 116,651.11 McCormick, Chad W.113,356.68 4,653.30 0.00 0.00 118,009.98 Navarro, William A.176,579.96 5,170.45 0.00 0.00 181,750.41 Otto, Nicholas E.182,886.63 4,691.12 0.00 0.00 187,577.75 Pasquarella, Daniel L.151,407.69 5,054.08 0.00 0.00 156,461.77 Petersen, Tyler M.75,693.02 4,015.28 0.00 0.00 79,708.30 Potesta, Brian N.115,143.52 3,977.46 0.00 0.00 119,120.98 Buffalo Grove Firefighters' Pension Fund Member Contribution Report As of Month Ended April 30, 2025 See Accountants' Compilation Report 10-1 24 of 246 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Buffalo Grove Firefighters' Pension Fund Member Contribution Report As of Month Ended April 30, 2025 Quill, Dennis W.205,431.19 4,072.01 0.00 0.00 209,503.20 Renshaw, Scott A.84,691.68 4,034.19 0.00 0.00 88,725.87 Rusin, Steven M.249,976.99 4,596.57 0.00 0.00 254,573.56 Russell, Andrew L.205,675.91 5,365.17 0.00 0.00 211,041.08 Schroeder, Adam T.35,652.64 3,289.60 0.00 0.00 38,942.24 Schroeder, Philip Q.54,288.27 3,836.54 0.00 0.00 58,124.81 Senese, Jacob M.35,660.97 3,289.60 0.00 0.00 38,950.57 Shin, Anthony J.28,177.71 3,104.92 0.00 0.00 31,282.63 Solecki, Joseph R.84,683.93 4,034.19 0.00 0.00 88,718.12 Steadman, Gary L.60,843.85 3,977.46 0.00 0.00 64,821.31 Sutherland, Eric S.55,690.07 3,955.70 0.00 0.00 59,645.77 Vena, James D.178,957.60 4,596.57 0.00 0.00 183,554.17 Wehrheim, Nicklaus J.106,403.23 3,977.46 0.00 0.00 110,380.69 Whisler, Kenneth G.31,482.21 3,225.87 0.00 0.00 34,708.08 Wojcik, Andrew C.54,291.97 3,836.54 0.00 0.00 58,128.51 Wood, Scott A.112,672.32 4,034.19 0.00 0.00 116,706.51 Zabilka, David G.46,260.23 3,663.74 0.00 0.00 49,923.97 5,348,221.32 212,760.26 0.00 0.00 5,560,981.58 Morris, Jeffery W.252,736.47 2,916.92 0.00 0.00 255,653.39 Totals 5,600,957.79 215,677.18 0.00 0.00 5,816,634.97 Inactive/Terminated Members See Accountants' Compilation Report 10-2 25 of 246 26 of 246 27 of 246 28 of 246 Check Invoice Check Date Number Vendor Name Amount Amount 02/28/25 30627 Village of Buffalo Grove - Insurance 20-220-00 Medical Insurance - 02/25 11,351.45 20-220-00 Vision Insurance 79.40 20-220-00 Dental Insurance 935.53 ACH Amount (Direct Deposit)12,366.38 02/28/25 30628 Internal Revenue Service 20-230-00 Internal Revenue Service 49,382.97 ACH Amount (Direct Deposit)49,382.97 03/31/25 30635 Village of Buffalo Grove - Insurance 20-220-00 Medical Insurance - 03/25 12,064.77 20-220-00 Vision Insurance 79.40 20-220-00 Dental Insurance 935.53 ACH Amount (Direct Deposit)13,079.70 03/31/25 30636 Internal Revenue Service 20-230-00 Internal Revenue Service 50,366.97 ACH Amount (Direct Deposit)50,366.97 04/30/25 30641 Village of Buffalo Grove - Insurance 20-220-00 Medical Insurance - 4/25 8,595.92 20-220-00 Vision Insurance 79.40 20-220-00 Dental Insurance 935.53 ACH Amount (Direct Deposit)9,610.85 04/30/25 30642 Internal Revenue Service 20-230-00 Internal Revenue Service 51,206.56 ACH Amount (Direct Deposit)51,206.56 Total Payments 186,013.43 Buffalo Grove Firefighters' Pension Fund Quarterly Deduction Report All Bank Accounts February 1, 2025 - April 30, 2025 See Accountants' Compilation Report 12-1 29 of 246 Check Invoice Check Date Number Vendor Name Amount Amount 02/27/25 30630 The Northern Trust Company 13-800-01 Buffalo Grove Firefighters Pension Fund 26,700.00 ACH Amount (Direct Deposit)26,700.00 02/28/25 30631 The Northern Trust Company 13-800-01 Buffalo Grove Firefighters Pension Fund 154,622.99 ACH Amount (Direct Deposit)154,622.99 03/13/25 30632 The Northern Trust Company 13-800-01 Buffalo Grove Firefighters Pension Fund 229,878.20 ACH Amount (Direct Deposit)229,878.20 03/28/25 30638 The Northern Trust Company 13-800-01 Buffalo Grove Firefighters Pension Fund 20,000.00 ACH Amount (Direct Deposit)20,000.00 04/03/25 30639 The Northern Trust Company 13-800-01 Buffalo Grove Firefighters Pension Fund 107,683.42 ACH Amount (Direct Deposit)107,683.42 04/28/25 30645 The Northern Trust Company 13-800-01 Buffalo Grove Firefighters Pension Fund 14,500.00 ACH Amount (Direct Deposit)14,500.00 Total Payments 553,384.61 Buffalo Grove Firefighters' Pension Fund Quarterly Transfer Report All Bank Accounts February 1, 2025 - April 30, 2025 See Accountants' Compilation Report 13-1 30 of 246 Check Invoice Check Date Number Vendor Name Amount Amount 02/10/25 30626 Lauterbach & Amen, LLP 52-170-03 #100235 01/25 Accounting & Benefits 1,215.00 52-170-06 #100235 01/25 PSA 1,250.00 ACH Amount (Direct Deposit)2,465.00 02/24/25 30629 Lauterbach & Amen, LLP 52-170-03 #100738 FYE24 1099's 395.00 ACH Amount (Direct Deposit)395.00 02/24/25 50202 BMO Bank 52-190-04 Bank Fee 38.84 Check Amount 38.84 02/28/25 50203 IFPIF 52-195-02 Other Fee & Expenses 4,390.00 52-195-03 Management Fee 2,110.91 52-195-05 Other Expenses 95.40 52-195-06 Swap Fees 4.14 52-195-07 Private Equity and Real Estate Fees 288.62 Check Amount 6,889.07 03/06/25 50205 Sawyer Falduto Asset Management, LLC 52-190-01 Investment Manager/Advisor Fee 1,500.00 Check Amount 1,500.00 03/17/25 30633 Lauterbach & Amen, LLP 52-170-03 #101429 02/25 Accounting & Benefits 1,215.00 52-170-06 #101429 02/25 PSA 1,250.00 ACH Amount (Direct Deposit)2,465.00 03/20/25 30634 Ottosen DiNolfo, LTD 52-170-05 #12659 Dorsey Disability 82.50 52-170-05 #12658 General 1,422.50 ACH Amount (Direct Deposit)1,505.00 03/24/25 50204 BMO Bank 52-190-04 Bank Fee 64.55 Check Amount 64.55 03/28/25 30637 Lauterbach & Amen, LLP 52-170-03 #102146 FYE24 Workpapers 1,110.00 ACH Amount (Direct Deposit)1,110.00 Buffalo Grove Firefighters' Pension Fund Quarterly Disbursement Report All Bank Accounts February 1, 2025 - April 30, 2025 See Accountants' Compilation Report 14-1 31 of 246 Check Invoice Check Date Number Vendor Name Amount Amount 03/31/25 50206 IFPIF 52-195-01 Administrator Expenses -417.66 52-195-03 Management Fee 6,924.12 52-195-05 Other Expenses 74.03 52-195-02 Other Fee & Expenses 2,369.47 52-195-07 Private Equity and Real Estate Fees 23,532.98 52-195-06 Swap Fees 2,996.82 Check Amount 35,479.76 04/14/25 30640 Lauterbach & Amen, LLP 52-170-03 #102562 03/25 Accounting & Benefits 1,215.00 52-170-06 #102562 03/25 PSA 1,250.00 ACH Amount (Direct Deposit)2,465.00 04/21/25 30643 Lauterbach & Amen, LLP 52-170-01 #103279 FYE24 Tax Levy 2,460.00 ACH Amount (Direct Deposit)2,460.00 04/21/25 30644 Ottosen DiNolfo, LTD 52-170-05 #13432 General 892.50 52-170-05 #10883 General 382.50 52-170-05 #12026 General 687.50 52-170-05 #13433 Dorsey Disability 727.50 52-170-05 #10884 Dorsey Disability 330.00 52-170-05 #12027 Doresey Disability 1,355.53 ACH Amount (Direct Deposit)4,375.53 04/22/25 50207 BMO Bank 52-190-04 Bank Fee 38.99 Check Amount 38.99 04/30/25 50208 IFPIF 52-195-03 Management Fee 549.20 52-195-05 Other Expenses 127.29 52-195-02 Other Fee & Expenses 4,309.66 52-195-07 Private Equity and Real Estate Fees 2,237.76 52-195-06 Swap Fees 5.63 Check Amount 7,229.54 Total Payments 68,481.28 Buffalo Grove Firefighters' Pension Fund Quarterly Disbursement Report All Bank Accounts February 1, 2025 - April 30, 2025 See Accountants' Compilation Report 14-2 32 of 246 Monthly Financial Report For the Month Ended May 31, 2025 Prepared By 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS 60563 PHONE 630.393.1483 • FAX 630.393.2516 www.lauterbachamen.com 33 of 246 Buffalo Grove Firefighters' Pension Fund Table of Contents Starting on Page Accountants' Compilation Report................................................................................................1-1 Financial Statements Statement of Net Position - Modified Cash Basis................................................................... 2-1 Statement of Changes in Net Position - Modified Cash Basis................................................ 2-2 Other Supplementary Information Pooled Investment NAV vs Accumulated Net Investments Graph..........................................3-1 Cash Analysis Report............................................................................................................... 4-1 Cash Transfer to/from Consolidated Fund Graph.................................................................... 5-1 Revenue Report....................................................................................................................... 6-1 Cash Analysis Summary Graph............................................................................................... 7-1 Expense Report........................................................................................................................ 8-1 Pension Benefits and Expenses Graph.................................................................................... 9-1 Member Contribution Report.................................................................................................. 10-1 Payroll Batch Report............................................................................................................... 11-1 Quarterly Deduction Report.................................................................................................... 12-1 Quarterly Transfer Report........................................................................................................ 13-1 Quarterly Disbursement Report............................................................................................... 14-1 34 of 246 35 of 246 June 24, 2025 Buffalo Grove Firefighters' Pension Fund 1051 Highland Grove Drive Buffalo Grove, IL 60089 To Members of the Pension Board: Management is responsible for the accompanying interim financial statements of the Buffalo Grove Firefighters'Pension Fund which comprise the statement of net position -modified cash basis as of May 31,2025 and the related statement of changes in net position -modified cash basis for the five months then ended in accordance with the modified cash basis of accounting and for determining that the modified cash basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. We did not audit or review the interim financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion,nor provide any form of assurance on these interim financial statements. The interim financial statements are prepared in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Management has elected to omit substantially all of the disclosures ordinarily included in interim financial statements prepared in accordance with the modified cash basis of accounting.If the omitted disclosures were included in the interim financial statements and other supplementary information, they might influence the user's conclusions about the Pension Fund's assets, liabilities, net position, additions and deductions. Accordingly, the interim financial statements and other supplementary information are not designed for those who are not informed about such matters. Other Matter The other supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. The other supplementary information was subject to our compilation engagement. We have not audited or reviewed the other supplementary information nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion,nor provide any form of assurance on the other supplementary information. Cordially, Lauterbach & Amen, LLP Lauterbach & Amen, LLP 1-1 36 of 246 37 of 246 Assets Cash and Cash Equivalents 9,931.99$ Investments at Fair Market Value Money Market Mutual Funds 100,000.00 Pooled Investments* 90,258,018.74 Total Cash and Investments 90,367,950.73 Total Assets 90,367,950.73 Liabilities Expenses Due/Unpaid 9,440.00 Total Liabilities 9,440.00 Net Position Held in Trust for Pension Benefits 90,358,510.73 Buffalo Grove Firefighters' Pension Fund Statement of Net Position - Modified Cash Basis As of May 31, 2025 *The above amounts includes private market investments that are reported at the last known fair market value. IFPIF will issue a 13th statement that is a final fiscal year end statement and will include the mark to market adjustment for private market investments. This final fiscal year end statement will be issued as soon as possible after they receive the final FMV's from the investment managers. See Accountants' Compilation Report 2-1 38 of 246 Additions Contributions - Municipal 481,170.95$ Contributions - Members 263,325.20 Total Contributions 744,496.15 Investment Income Interest and Dividends Earned 673,878.83 Net Change in Fair Value* 3,762,622.98 Total Investment Income 4,436,501.81 Less Investment Expense (64,258.04) Net Investment Income 4,372,243.77 Total Additions 5,116,739.92 Deductions Administration 33,815.53 Pension Benefits and Refunds Pension Benefits 2,186,450.67 Refunds 0.00 Total Deductions 2,220,266.20 Change in Position 2,896,473.72 Net Position Held in Trust for Pension Benefits Beginning of Year 87,462,037.01 End of Period 90,358,510.73 Buffalo Grove Firefighters' Pension Fund Statement of Changes in Net Position - Modified Cash Basis For the Five Months Ended May 31, 2025 *The above amounts includes private market investments that are reported at the last known fair market value. IFPIF will issue a 13th statement that is a final fiscal year end statement and will include the mark to market adjustment for private market investments. This final fiscal year end statement will be issued as soon as possible after they receive the final FMV's from the investment managers. See Accountants' Compilation Report 2-2 39 of 246 40 of 246 41 of 246 06/30/24 07/31/24 08/31/24 09/30/24 10/31/24 11/30/24 12/31/24 01/31/25 02/28/25 03/31/25 04/30/25 05/31/25 Financial Institutions BMO Bank - CK 10,079$ 5,351 14,400 22,459 19,304 10,017 9,977 6,767 9,954 9,896 10,002 9,932 10,079 5,351 14,400 22,459 19,304 10,017 9,977 6,767 9,954 9,896 10,002 9,932 Schwab - MM 649,597 539,587 506,444 494,070 100,000 152,483 100,769 173,389 147,377 207,683 159,395 100,000 649,597 539,587 506,444 494,070 100,000 152,483 100,769 173,389 147,377 207,683 159,395 100,000 Total 659,676 544,938 520,844 516,529 119,304 162,500 110,746 180,156 157,331 217,579 169,397 109,932 Contributions Current Tax 805,934 154,069 216,410 690,548 87,474 4,229 7,045 - 79,507 243,723 11,676 146,265 Contributions - Current Year 49,438 49,301 72,770 47,334 47,230 47,229 47,158 72,430 48,489 47,480 47,278 47,648 855,372 203,370 289,180 737,882 134,704 51,458 54,203 72,430 127,996 291,203 58,954 193,913 Expenses Pension Benefits 412,304 413,853 414,831 414,831 436,409 420,929 421,151 432,214 432,214 439,914 441,054 441,054 Administration 4,558 24,213 21,622 23,225 16,383 12,812 29,238 15,686 9,788 42,124 16,569 13,906 416,862 438,066 436,453 438,056 452,792 433,741 450,389 447,900 442,002 482,038 457,623 454,960 Total Contributions less Expenses 438,510 (234,696) (147,273)299,826 (318,088) (382,283) (396,186) (375,470) (314,006) (190,835) (398,669) (261,047) Buffalo Grove Firefighters' Pension Fund Cash Analysis Report For the Twelve Periods Ending May 31, 2025 See Accountants' Compilation Report 4-1 42 of 246 Buffalo Grove Firefighters' Pension Fund (600,000) (400,000) (200,000) - 200,000 400,000 600,000 800,000 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Cash Transfers to/from Consolidated Fund Cash Transfers into Consolidated Fund Cash Transfers out of Consolidated Fund See Accountants' Compilation Report 5-1 43 of 246 Contributions Contributions - Municipal 41-210-00 - Current Tax 146,265.45$ 481,170.95 146,265.45 481,170.95 Contributions - Members 41-410-00 - Contributions - Current Year 47,648.02 263,325.20 47,648.02 263,325.20 Total Contributions 193,913.47 744,496.15 Investment Income Interest and Dividends 43-252-04 - Schwab - Fixed Income 506.13 2,234.00 43-800-01 - IFPIF Consolidated Pool Dividend 47,888.60 201,748.00 43-800-02 - IFPIF Consolidated Pool Interest 95,355.26 467,942.58 43-800-03 - IFPIF Contribution Interest 54.41 112.03 43-800-04 - IFPIF Consolidated Pool Derivative Income 0.00 52.45 43-800-05 - Private Markets (P.E./R.E./P.C./I.N.F) Income Earned 5,167.31 1,739.77 148,971.71 673,828.83 Gains and Losses 44-800-01 - IFPIF Consolidated Pool - Unrealized 2,978,174.47 2,895,623.88 44-800-02 - IFPIF Consolidated Pool - Realized 55,953.53 866,999.10 3,034,128.00 3,762,622.98 Other Income 49-000-01 - Other Income 50.00 50.00 50.00 50.00 Total Investment Income 3,183,149.71 4,436,501.81 Total Revenue 3,377,063.18 5,180,997.96 Buffalo Grove Firefighters' Pension Fund Revenue Report as of May 31, 2025 Received Received this Month this Year See Accountants' Compilation Report 6-1 44 of 246 45 of 246 Expended Expended this Month this Year Pensions and Benefits 51-020-00 - Service Pensions 386,099.94$ 1,915,351.18 51-030-00 - Non-Duty Disability Pensions 5,097.09 25,485.45 51-040-00 - Duty Disability Pensions 22,872.72 114,363.60 51-060-00 - Surviving Spouse Pensions 26,984.61 131,250.44 Total Pensions and Benefits 441,054.36 2,186,450.67 Administrative Professional Services 52-170-01 - Actuarial Services 0.00 2,460.00 52-170-02 - Auditing Services 0.00 3,282.50 52-170-03 - Accounting & Bookkeeping Services 1,215.00 7,545.00 52-170-05 - Legal Services 3,957.50 14,313.03 52-170-06 - PSA/Court Reporter 1,250.00 6,215.00 6,422.50 33,815.53 Investment 52-190-01 - Investment Manager/Advisor Fees 0.00 1,500.00 52-190-04 - Bank Fees 43.42 228.80 52-195-01 - Administrator Expenses (IFPIF) 0.00 (417.66) 52-195-02 - Other Fee & Expenses (IFPIF) 1,485.39 15,444.97 52-195-03 - Management Fee (IFPIF) 1,596.95 11,181.18 52-195-05 - Other Expenses (IFPIF) 413.60 796.86 52-195-06 - Swap Fees (IFPIF) 5.47 3,014.46 52-195-07 - Private Markets (P.E./R.E./P.C./I.N.F) Fees (IFPIF) 3,938.81 32,509.43 7,483.64 64,258.04 Total Administrative 13,906.14 98,073.57 Total Expenses 454,960.50 2,284,524.24 Buffalo Grove Firefighters' Pension Fund Expense Report as of May 31, 2025 See Accountants' Compilation Report 8-1 46 of 246 Buffalo Grove Firefighters' Pension Fund - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Service Non-Duty Disability Duty Disability Surviving Spouse Administrative Expenses 1,915,351 25,485 114,364 131,250 98,074 Pension Benefits and Expenses See Accountants' Compilation Report 9-1 47 of 246 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Baniqued, Dustin J. $39,260.30 4,227.74 0.00 0.00 43,488.04 Beck, Brian D.278,626.43 6,824.29 0.00 0.00 285,450.72 Beckman, Robert L.117,831.48 5,618.03 0.00 0.00 123,449.51 Budnik, Alec R.45,956.26 4,488.04 0.00 0.00 50,444.30 Caballero, Alfredo A.113,258.22 5,618.03 0.00 0.00 118,876.25 Carroll, James R.106,428.86 4,861.34 0.00 0.00 111,290.20 Chrencik, Brian J.32,294.00 3,942.73 0.00 0.00 36,236.73 Collins, Shawn J.237,165.40 7,267.87 0.00 0.00 244,433.27 Dalton, Kyle M.42,180.16 4,227.74 0.00 0.00 46,407.90 Dinsmore, Patrick S.220,518.82 4,955.89 0.00 0.00 225,474.71 Ditthardt, Kyle S.51,781.64 4,571.47 0.00 0.00 56,353.11 Doll, Franklin C.149,965.74 4,936.98 0.00 0.00 154,902.72 Dorsey, Steven M.222,169.79 441.94 0.00 0.00 222,611.73 Downey, Daniel J.66,023.88 5,097.27 0.00 0.00 71,121.15 Eaton, Austin R.27,460.31 3,749.21 0.00 0.00 31,209.52 Gatto, Kevin 232,499.63 4,955.89 0.00 0.00 237,455.52 Gemmel, John M.14,981.68 3,428.81 0.00 0.00 18,410.49 Gleeson, Michael T.21,552.50 3,654.11 0.00 0.00 25,206.61 Heatley, Timothy 0.00 42.85 0.00 0.00 42.85 Herrmann, Robert W.170,183.64 6,656.21 0.00 0.00 176,839.85 Himmelspach, Joshua R.112,606.46 4,918.07 0.00 0.00 117,524.53 Hopp, Landon S.9,573.21 3,535.73 0.00 0.00 13,108.94 Huh, Jay 87,414.64 4,957.81 0.00 0.00 92,372.45 Kane, Lawrence J.40,642.29 7,925.72 0.00 0.00 48,568.01 Kaplan, Timothy M.21,555.82 3,654.11 0.00 0.00 25,209.93 Kieras, Kamil K.3,659.45 2,981.77 0.00 0.00 6,641.22 Kiotis, Alexandra N.6,434.68 3,158.35 0.00 0.00 9,593.03 Kolder, Charles A.153,650.28 4,861.34 0.00 0.00 158,511.62 Kruse, Cody R.60,852.22 4,861.34 0.00 0.00 65,713.56 Kujawowicz, Piotr A.45,953.33 4,488.04 0.00 0.00 50,441.37 Manka, Michael J.57,215.01 4,861.34 0.00 0.00 62,076.35 McCarthy, Ryan K.112,616.92 4,918.07 0.00 0.00 117,534.99 McCormick, Chad W.113,356.68 5,674.76 0.00 0.00 119,031.44 Navarro, William A.176,579.96 6,347.01 0.00 0.00 182,926.97 Otto, Nicholas E.182,886.63 5,712.58 0.00 0.00 188,599.21 Pasquarella, Daniel L.151,407.69 6,160.40 0.00 0.00 157,568.09 Petersen, Tyler M.75,693.02 4,899.16 0.00 0.00 80,592.18 Buffalo Grove Firefighters' Pension Fund Member Contribution Report As of Month Ended May 31, 2025 See Accountants' Compilation Report 10-1 48 of 246 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Buffalo Grove Firefighters' Pension Fund Member Contribution Report As of Month Ended May 31, 2025 Potesta, Brian N.115,143.52 4,861.34 0.00 0.00 120,004.86 Quill, Dennis W.205,431.19 4,955.89 0.00 0.00 210,387.08 Renshaw, Scott A.84,691.68 4,918.07 0.00 0.00 89,609.75 Rusin, Steven M.249,976.99 5,618.03 0.00 0.00 255,595.02 Russell, Andrew L.205,675.91 6,651.98 0.00 0.00 212,327.89 Schroeder, Adam T.35,652.64 4,058.28 0.00 0.00 39,710.92 Schroeder, Philip Q.54,288.27 4,720.42 0.00 0.00 59,008.69 Senese, Jacob M.35,660.97 4,058.28 0.00 0.00 39,719.25 Shin, Anthony J.28,177.71 3,821.78 0.00 0.00 31,999.49 Solecki, Joseph R.84,683.93 4,918.07 0.00 0.00 89,602.00 Steadman, Gary L.60,843.85 4,861.34 0.00 0.00 65,705.19 Sutherland, Eric S.55,690.07 4,839.58 0.00 0.00 60,529.65 Vena, James D.178,957.60 5,712.58 0.00 0.00 184,670.18 Wehrheim, Nicklaus J.106,403.23 4,861.34 0.00 0.00 111,264.57 Whisler, Kenneth G.31,482.21 3,942.73 0.00 0.00 35,424.94 Wojcik, Andrew C.54,291.97 4,720.42 0.00 0.00 59,012.39 Wood, Scott A.112,672.32 4,918.07 0.00 0.00 117,590.39 Zabilka, David G.46,260.23 4,488.04 0.00 0.00 50,748.27 5,348,221.32 260,408.28 0.00 0.00 5,608,629.60 Morris, Jeffery W.252,736.47 2,916.92 0.00 0.00 255,653.39 Totals 5,600,957.79 263,325.20 0.00 0.00 5,864,282.99 Inactive/Terminated Members See Accountants' Compilation Report 10-2 49 of 246 50 of 246 51 of 246 52 of 246 =0=;< :2,$52<1&244*0.":.;2-.6< &244*0.7/=//*47:7>. #*=887=4.>*:- =//*47:7>.442672; " !# !$ .*:":.;2-.6<$52<1*6- .5+.:;7/<1.&244*0.7*:- $.,<2767/<1.442672;".6;2767-.8:7>2-.;<1*<<1.&244*0.7/=//*47:7>.;1*44*66=*44A4.>A*<*@ 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1:2;4*,326*6,.2:.,<7:&244*0.7/=//*47:7>.? .6,47;=:.; 132 of 246 THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND PUBLIC ACT 95-0950 MUNICIPAL COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 202 50 Raupp Boulevard Buffalo Grove, IL 60089 Phone: 847.537.0995 Fax: 847.459.2509 www.vbg.org 133 of 246 July 28, 2025 Members of the Pension Board of Trustees Buffalo Grove Firefighters' Pension Fund Buffalo Grove, Illinois Enclosed please find a copy of your Municipal Compliance Report for the Buffalo Grove Firefighters' Pension Fund for the fiscal year ended December 31, 2024. We have prepared the report with the most recent information available at our office. Should you have more current information, or notice any inaccuracies, we are prepared to make any necessary revisions and return them to you. The President and Secretary of the Pension Fund are required to sign the report on page 3. If not already included with the enclosed report, please also include a copy of the Pension Fund’s most recent investment policy. The signed Public Act 95-0950 - Municipal Compliance Report must be provided to the Municipality before the tax levy is filed on the last Tuesday in December. We are sending the report via email to promote an environmentally-friendly work atmosphere. If you have any questions regarding this report, please contact your Client Manager or PSA. Respectfully submitted, LAUTERBACH & AMEN, LLP 134 of 246 1) Current Preceding Fiscal Year Fiscal Year Total Cash and Investments (including accrued interest) $87,471,477 $80,904,766 Total Net Position $87,462,037 $80,909,701 2) $644,100 $6,123,000 $2,615,212 3) $1,491,176 $2,615,212 $1,383,215 The total cash and investments, including accrued interest, of the fund at market value and the total net position of the Pension Fund: Estimated Receipts - Employee Contributions Estimated Receipts - All Other Sources Annual Requirement of the Fund as Determined by: Private Actuary - Lauterbach & Amen, LLP The estimated receipts during the next succeeding fiscal year from deductions from the salaries of firefighters' and from other sources: THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2024 The Pension Board certifies to the Board of Trustees of the Village of Buffalo Grove, Illinois on the condition of the Pension Fund at the end of its most recently completed fiscal year the following information: Investment Earnings Municipal Contributions Recommended Municipal Contributions Alternative Municipal Contributions Firefighters' Pension Investment Fund The estimated amount necessary during the fiscal year to meet the annual actuarial requirements of the pension fund as provided in Sections 4-118 and 4-120: Page 1 135 of 246 THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2024 4) Current Preceding Fiscal Year Fiscal Year Net Income Received from Investment of Assets $8,678,903 $10,851,258 Assumed Investment Return 7.125% 7.125% 7.000% 7.000% Actual Investment Return 10.309% 14.188% 5) N/A $37,802 6) Number of Active Members 55 7) Total Amount Number of Disbursed 48 $4,413,924 5 $302,162 (iii) Survivors and Child Benefits 4 $279,744 Totals 57 $4,995,830 The total amount that was disbursed in benefits during the fiscal year, including the number of and total amount disbursed to (i) annuitants in receipt of a regular retirement pension, (ii) recipients being paid a disability pension, and (iii) survivors and children in receipt of benefits: The total number of active employees who are financially contributing to the fund: (i) Regular Retirement Pension (ii) Disability Pension Firefighters' Pension Investment Fund Private Actuary - Lauterbach & Amen, LLP The increase in employer pension contributions that results from the implementation of the provisions of P.A. 93-0689: The total net income received from investment of assets along with the assumed investment return and actual investment return received by the fund during its most recently completed fiscal year compared to the total net income, assumed investment return, and actual investment return received during the preceding fiscal year: Firefighters' Pension Investment Fund Private Actuary - Lauterbach & Amen, LLP Page 2 136 of 246 THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2024 8) Current Preceding Fiscal Year Fiscal Year 83.64% 82.67% 81.85% 83.06% 9) $17,175,589 $19,403,394 10) The Board of Trustees of the Pension Fund, based upon information and belief, and to the best of our knowledge, hereby certify pursuant to §4-134 of the Illinois Pension Code 40 ILCS 5/4-134, that the preceding report is true and accurate. Adopted this ___________ day of __________, 2025 Secretary ______________________________________________ Date ___________________ President _______________________________________________ Date ___________________ Firefighters' Pension Investment Fund Private Actuary - Lauterbach & Amen, LLP The accrued liability is the actuarial present value of the portion of the projected benefits that has been accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions employed in the valuation. The unfunded accrued liability is the excess of the accrued liability over the actuarial value of assets. PENSION FUND COMPLIANCE REPORT Unfunded Liability: The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability: CERTIFICATION OF MUNICIPAL FIREFIGHTERS' The funded ratio of the fund: Please see attached Investment/Cash Management policy if applicable Please see Notes Page attached. Firefighters' Pension Investment Fund Private Actuary - Lauterbach & Amen, LLP Page 3 137 of 246 1) Total Cash and Investments - as Reported at Market Value in the Audited Financial Statements for the Years Ended December 31, 2024 and 2023. Total Net Position - as Reported in the Audited Financial Statementsfor the Years Ended December 31, 2024 and 2023. 2) Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the Year Ended December 31, 2024 plus 3.25% Increase (Actuarial Salary Increase Assumption) Rounded to the Nearest $100. Estimated Receipts - All Other Sources Investment Earnings - Cash and Investments as Reported in the Audited Financial Statements for the Year Ended December 31, 2024, times 7% (Actuarial Investment Return Assumption) Rounded to the Nearest $100. Municipal Contributions - Recommended Tax Levy Requirement as Reported by Lauterbach & Amen, LLP, Actuarial Valuation for the Year Ended December 31, 2024. 3) Annual Requirement of the Fund as Determined by: Firefighters' Pension Investment Fund - Suggested Amount of Tax Levy as Reported in the December 31, 2024 Actuarial Valuation. Private Actuary - Lauterbach & Amen, LLP: Recommended Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the December 31, 2024 Actuarial Valuation. Alternative Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the December 31, 2024 Actuarial Valuation. INDEX OF ASSUMPTIONS THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2024 Page 4 138 of 246 INDEX OF ASSUMPTIONS THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2024 4) Net Income Received from Investment of Assets - Investment Income (Loss) net of Investment Expense, as Reported in the Audited Financial Statements for the Years Ended December 31, 2024 and 2023. Assumed Investment Return: Firefighters' Pension Investment Fund - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Years Ended December 31, 2024 and 2023 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Years Ended December 31, 2024 and 2023 Actuarial Valuations. Actual Investment Return -Net Income Received from Investments as Reported Above as a Percentage of the Average of the Beginning and Ending Balances of the Fiscal Year Cash Investments, Excluding Net Investment Income, Gains, and Losses for the Fiscal Year Return Being calculated, as Reported in the Audited Financial Statements for the Fiscal Years Ended December 31, 2024 and 2023. 5) Illinois Department of Insurance - Amount of total suggested tax levy to be excluded from the property tax extension limitation law as contemplated by 35 ILCS 200/18-185. Private Actuary - Lauterbach & Amen, LLP Suggested Amount of total tax levy to be excluded from the property tax extension limitation law as contemplated by 35 ILCS 200/18-185. FROM THE PROPERTY TAX EXTENSION LIMITATION LAW AS CONTEMPLATED BY 35 ILCS 200/18-185. 6) Number of Active Members - Illinois Department of Insurance Annual Statement for December 31, 2024 - Schedule P. 7) (i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for December 31, 2024 - Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed. (ii) Disability Pension - Same as above. (iii) Survivors and Child Benefits - Same as above. Page 5 139 of 246 INDEX OF ASSUMPTIONS THE VILLAGE OF BUFFALO GROVE, ILLINOIS FIREFIGHTERS' PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2024 8) The funded ratio of the fund: Firefighters' Pension Investment Fund - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total Assets as Reported in the December 31, 2024 and 2023 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total Assets as Reported in the December 31, 2024 and 2023 Actuarial Valuations. 9) Unfunded Liability: Firefighters' Pension Investment Fund - Deferred Asset (Unfunded Accrued Liability) as Reported in the December 31, 2024 Actuarial Valuation. Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Lauterbach & Amen, LLP in the December 31, 2024 Actuarial Valuation. Page 6 140 of 246 Investing in Your Members Before consolidation, the responsibility for investment decisions had a prominent role in Article 3 and 4 pension boards’ meetings and captured, perhaps, an outsized amount of attention from pension trustees. That focus and interest was understandable; anyone who has served on a public pension board over the last three decades can attest to the enormous responsibility public pension trustees have to make sure the fund’s assets are prudently invested, properly diversified and managed by investment professionals who engage in their co-fiduciary responsibilities with integrity and at fair fees. The responsibility for investments was useful in recruiting appointed trustees to serve on the pension board, many of whom were investment professionals who offered valuable additional insight in the investment decision process. Furthermore, the investment education that accompanied their fiduciary responsibilities was an added personal bonus for pension trustees, helping them understand the financial markets and make prudent decisions regarding their own investments and future retirement security. Now with the two consolidated funds – Illinois Police Officers’ Pension Investment Fund (IPOPIF) and Firefighters’ Pension Investment Fund of Illinois (FPIF) -- responsible for investments, Article 3 and 4 pension trustees need to rethink the primary focus of their fiduciary responsibilities. That focus should be an “investment” in the needs of the fund’s members. Here are a few ways trustees can focus their efforts on members: Communicate regularly with members, providing them with education about their pension benefits. From the inception of their entry into service, members should be provided information about their pension benefits. At a minimum, the board should consider providing a copy of the board rules to new members when meeting with them to secure their membership application and related documents for the fund’s files. Often, active pension trustees will also share a more extensive introductory presentation with new members to explain benefits. Periodically, members also appreciate opportunities to receive benefit information through workshops where their spouses can attend, and they can ask specific questions. These workshops can be provided with the assistance of the fund’s outside vendors and/or through opportunities provided with the municipality’s human resource department where related employee benefits, such as health insurance, are addressed. Finally, many boards provide periodic communications about the activities of the board, whether by simply posting in the station or emailing the board’s approved meeting minutes, or by sharing general updates about pension issues relevant to the membership. Encourage members to keep their information on file with the pension fund up to date. It is important that members keep their personal and beneficiary information up to date with the pension fund. Life events such as marriage, birth of a child, divorce , or death may affect who is eligible for survivor benefits. This becomes particularly important for retired members who, as they live longer (and sometimes become widowed), may need to have assistance from an adult child or other trusted person to serve as their power of attorney. Make sure members know that they need to share information with the pension fund and provide opportunities at least annually for members to review their information on file and submit updates and new documents, as needed, for their pension files. PENSIONˢ I Third Quarter 2025 NSIGHTS Ottosen DiNolfo Hasenbalg & Castaldo, Ltd. © 2025 141 of 246 Protect members’ personal information. Pension funds hold a tremendous amount of sensitive personal information regarding their members and beneficiaries; as a result, pension funds (and their underlying municipalities) are often targets of cyberattacks. It is imperative that pension funds take steps to protect this information, whether held internally or externally with third parties. Similarly, medical information is occasionally sought regarding members going through the disability application process or through annual IME processes to confirm continued qualification for disability benefits. Boards should be cautious about releasing medical documents to third parties (such as the municipality or a worker’s compensation carrier) unless a subpoena has been properly issued or the member has provided a release. Furthermore, requests for medical information about members under a Freedom of Information Act (FOIA) request should be denied, as this information constitutes personal and private information which is exempt from disclosure (5 ILCS 140/2(c-5), 7(b) and (c)). Critical to protecting information held by the pension fund is using more secure ways to share information amongst the board members, the employer, outside professional advisors, and members. Emailing this information is not secure and regular U.S. postal services are becoming less reliable; pension boards should consider secure cloud-based options to provide a method to receive and share information instead. Conduct ongoing internal audits of member information. At a minimum, the pension board should be carefully reviewing member information contained in the Illinois Department of Insurance (DOI) Annual Statement to ensure it is accurate and updated. Asking active members to review their own information annually and confirm their personal pension files is complete should be routinely done. Review carefully the list of deferred members and terminated members in the pension fund, to make sure steps have been taken for the members to qualify for benefits in the future and, where terminated members are entitled to refunds, that the fund takes steps to find them to obtain their application for a refund. When a fund cannot track down terminated members about a refund of contributions, the fund has an obligation to report this information to the State Treasurer as unclaimed property under the Revised Uniform Unclaimed Property Act (765 ILCS 1026/15-1505 and 15-1506). Ottosen DiNolfo Hasenbalg & Castaldo, Ltd. © 2025 1804 North Naper Boulevard, Suite 350, Naperville, Illinois 60563 P: (630) 682-0085 F: (630) 682-0788 www.ottosenlaw.com 142 of 246 Ottosen DiNolfo Hasenbalg & Castaldo, Ltd. © 2025 The Critical Importance of Documentation of Process In the complex landscape of public pension administration, thorough documentation serves as both shield and compass. For Illinois public pension funds, recordkeeping isn’t merely good practice; it’s essential for regulatory compliance, fiduciary responsibility, and long-term fund sustainability. Building a Foundation of Accountability Documentation creates a clear trail of decisions and actions taken by pension boards. Its major benefit is that, if there is ever an issue regarding a previously encountered matter, pension funds will be well poised to confidently and efficiently put to rest any subsequent disputes or issues. In that sense, routine documentation is one of the most useful tools a pension fund can implement—both on a macro and micro scale. Clearly, a pension board would document its “big” decisions (e.g., retirement and disability pension determinations). However, documentation of day-to-day items is important, too. For instance, when accountants’ and investment reports are reviewed, meeting minutes should reflect not only that the review occurred, but also capture any significant discussions, questions raised, and resulting decisions. This level of detail demonstrates active oversight and prudent management of fund assets. Protecting Pensioner Rights and Benefits Perhaps no documentation is more critical to a pensioner than that concerning their benefits. Accordingly, public pension funds should strive to maintain thorough files and documentation about their members. At a minimum, each pensioner’s file should contain complete records of their initial application materials, relevant biographical information, benefit calculations, disability applications, determinations, and annual examination reports (when applicable), and correspondence related to benefits. When questions arise about a specific pensioner’s benefits—whether from the individual, family members, or regulatory bodies—having readily accessible, thorough documentation allows for prompt, accurate responses. This protects both the pensioner’s rights and the fund from potential disputes. Weathering Regulatory Scrutiny Under Section 1A-104 of the Illinois Pension Code (40 ILCS 5/1A-104), the Illinois Department of Insurance (DOI) Public Pension Division is responsible to make periodic examinations and investigations of all pension funds in Illinois. Section 1A-104 allows the DOI to accept and rely upon an outside audit report conducted by an independent certified public accountant, but retains the power to make further audit, examination or investigation if it deems necessary. More recently for Article 3 and 4 pension funds, the periodic examination responsibility has shifted from the DOI to the two consolidated funds—Illinois Police Officers’ Pension Investment Fund (IPOPIF) and the Firefighters’ Pension Investment Fund of Illinois (FPIF)—who are now responsible for conducting a compliance examination of all Article 3 and 4 funds once every three years. (40 ILCS 5/1A-104(b)) FIDUCIARY I July 2025 NSIGHTS 143 of 246 Ottosen DiNolfo Hasenbalg & Castaldo, Ltd. © 2025 Examiners carefully review documentation to verify compliance with statutory requirements and proper fund management. Funds with incomplete or disorganized records often face adverse findings, potentially leading to additional reporting and follow up requirements, public criticism that undermines stakeholder confidence, and more. However, well-documented funds typically experience smoother examinations with fewer findings. The investment in proper documentation pays dividends through reduced regulatory friction. Creating Effective Documentation Systems Effective documentation doesn’t just happen. Instead, it requires pension trustees to put in place appropriate systems. To the extent they have not already, pension funds should establish: ▪ Standardized templates for meeting minutes ▪ Structured processes for retirement and disability benefit applications ▪ Organized filing systems (physical and digital) ▪ Regular informal documentation audits to identify gaps But at the same time, documentation routines should balance thoroughness with practicality. For example, meeting minutes need not be a verbatim recitation of everything that was said at a meeting. Instead, they should capture any significant matters. In addition, board resolutions can be used to develop documentation of statutory authority—as well as explanation of the board’s careful review and consideration of a matter—to support board action, while efficiently providing written proof of a board’s due diligence. This further eliminates the need for extensive explanation in board meeting minutes to properly document the board’s decision-making processes. Using such a balanced documentation approach will preserve precious resources while still meeting essential documentation requirements. Conclusion For Illinois public pension funds, documentation serves as both an insurance policy and a management tool. By establishing robust documentation processes, pension trustees fulfill their fiduciary responsibilities, protect pensioner interests, and position their funds for successful regulatory examinations. As such, good documentation isn’t busywork—it’s protection. 1804 North Naper Boulevard, Suite 350, Naperville, Illinois 60563 P: (630) 682-0085 F: (630) 682-0788 www.ottosenlaw.com 144 of 246 145 of 246 146 of 246 147 of 246 HB2409: THE PFAS REDUCTION ACT ¡Targets PFAS chemicals in firefighting equipment and personal protective clothing, creating a phased approach to notification requirements and eventual bans. ¡Who is covered? The law applies to any person, firm, association, partnership, corporation, organization, joint venture, importer, or domestic distributor selling firefighting equipment to individuals, local governments, or state agencies. 148 of 246 HB2409: THE PFAS REDUCTION ACT ¡Phase 1 - Notification Requirements (Starting January 1, 2026):Firms selling firefighting personal protective clothing containing PFAS chemicals must provide written notice to purchasers stating that the clothing contains PFAS and explaining why PFAS chemicals are added. Both seller and purchaser must retain copies for at least 3 years and provide them to the Illinois EPA upon request within 60 days. ¡Phase 2 - Ban on PFAS Firefighting Clothing (Starting January 1, 2027):Complete prohibition on knowingly manufacturing, selling, offering for sale, distributing for sale, or distributing for use any firefighting personal protective clothing containing intentionally added PFAS chemicals. ¡Phase 3 - Ban on PFAS Auxiliary Equipment (Starting January 1, 2030):Complete prohibition on knowingly manufacturing, selling, offering for sale, distributing for sale, or distributing for use any auxiliary firefighting personal protective equipment (breathing apparatus, etc.) containing intentionally added PFAS chemicals. 149 of 246 150 of 246 COMPARISON OF TIER 1 AND TIER 2 BENEFITS Tier 1 Tier 2 Membership Criteria Joined before January 1, 2011 Joined after January 1, 2011 Normal Retirement Age 50 years of age 55 years of age Normal Retirement Benefit Beginning with 20 years of service, 50% benefit. Increase 2.5% per year up to maximum. Beginning with 10 years of service, 25% benefit. Increases 2.5% per year of service up to maximum. Reduced Benefits 60 years of age, 10 years of service, yields 2.5 to 4.2% per year benefit reduction 50 years of age, 10 years of service, yields 6% per year benefit reduction Maximum Benefit 75% of last salary 75% of average of “final average salary” Pensionable Salary Cap?None $106,800 in 2011, which grows at the rate of inflation or 3% per year, whichever is less Initial COLA Increase Age 55 Age 60 Cost of Living Adjustment 3% per year compounding One-half the annual unadjusted increase in the consumer price index-u or 3%, whichever is less 151 of 246 152 of 246 TIER 2 – GOVERNOR’S RESPONSE? ¡From the recently passed budget law: ¡“If, after the effective date of this amendatory Act of the 104 th General Assembly, any enforceable determination concludes that the benefits for a Tier 2 member or participant under Section 1-160 or 15-111 of the Illinois Pension Code do not provide the minimum retirement benefits required under Internal Revenue Service regulations or other provisions of federal law such that the wages of such member or participant would be subject to tax under the Federal Insurance Contributions Act, then moneys in the Tier 2 SSWB Reserve Fund may be used by the State Employees’ Retirement System of Illinois, the Teachers’ Retirement System of the State of Illinois, or the State Universities Retirement System to pay the difference between benefits otherwise available and benefits that would constitute minimum retirement benefits under applicable federal law or regulation. This subsection shall constitute a continuing appropriation of all amounts necessary for such purposes.” ¡But nothing for Article 4 downstate firefighters’ pension funds 153 of 246 OTHER NEW(ISH) LEGISLATION 154 of 246 MANDATORY MENTAL HEALTH COUNSELING COVERAGE (P.A. 103-818) ¡Defines “mental health counseling” and “first responder” ¡FPDs who act as self-insurers for providing employee health insurance benefits must provide mental health counseling coverage to first responders and spouses without any deductible, co-payment or other cost sharing ¡Few FPDs are self-insurers but this might be a first step towards getting similar coverages in place for third party plans 155 of 246 THE SOCIAL SECURITY FAIRNESS ACT (H.R. 82) ¡Repeals the Government Pension Offset (GPO) and the Windfall Elimination Act (WEA) ¡Applies to governmental workers, including public safety workers who work in a secondary capacity and is otherwise eligible for social security benefits ¡Impacts 2.8 Million workers who have been ineligible to receive some or all of their earned social security benefits due to the earlier enactment of the GPO and WEA. ¡Applies to any benefits provided after December 2023 156 of 246 Tier 2 & Public Defined Benefit Challenges & The Impact on Recruiting Firefighters 157 of 246 158 of 246 159 of 246 160 of 246 161 of 246 162 of 246 163 of 246 164 of 246 165 of 246 166 of 246 167 of 246 168 of 246 169 of 246 170 of 246 171 of 246 172 of 246 173 of 246 174 of 246 175 of 246 176 of 246 177 of 246 178 of 246 179 of 246 180 of 246 181 of 246 182 of 246 183 of 246 184 of 246 185 of 246 186 of 246 187 of 246 188 of 246 189 of 246 190 of 246 191 of 246 192 of 246 193 of 246 194 of 246 195 of 246 196 of 246 197 of 246 198 of 246 199 of 246 200 of 246 201 of 246 PRESENTERS Carolyn Welch Clifford Senior Partner Ottosen DiNolfo Hasenbalg & Castaldo, Ltd. Naperville, Illinois Kevin Cavanaugh Principal, Actuarial Services Lauterbach & Amen, LLP Naperville, Illinois 202 of 246 203 of 246 204 of 246 205 of 246 206 of 246 207 of 246 208 of 246 209 of 246 210 of 246 INPUTS TO THE ACTUARIAL VALUATION 11 FUNDING POLICY PLAN PROVISIONSASSUMPTIONS DATA 211 of 246 212 of 246 213 of 246 214 of 246 Entry Age Normal vs Projected Unit Credit FUNDING POLICY – ACTUARIAL COST METHOD 15 Age No r m a l C o s t C o n t r i b u t i o n 215 of 246 216 of 246 FUNDING POLICY – LEVEL % VS LEVEL $ 17 Source: Conference of Consulting Actuaries – Current Events in Public Plan Funding Policy – May 5, 2025 217 of 246 218 of 246 219 of 246 220 of 246 221 of 246 SINGLE POINT AMORTIZATION 22 Adherence is Challenging Transparent on the Surface, but not in Practice Volatile Vicious Cycle 222 of 246 ROLLING AMORTIZATION 23 Reset Amortization of All Unfunded Liability Each Year Lower Cost Volatility Management Does Not Pay Off All Future Unfunded Liability 223 of 246 LAYERED AMORTIZATION 24 New Bases Setup Each Year for Change in Unfunded Liability Volatility Management Intergenerational Taxpayer Equity Endorsed 224 of 246 225 of 246 226 of 246 227 of 246 228 of 246 229 of 246 230 of 246 231 of 246 232 of 246 233 of 246 234 of 246 235 of 246 236 of 246 237 of 246 Organization: Year: 2025 Hours Completed Date Completed Cert on File 1 7.5 1/31-2/1 Yes 2 3 4 5 6 Hours Completed Date Completed Cert on File 1 2 3 4 5 6 Hours Completed Date Completed Cert on File 1 2 3 4 5 6 Hours Completed Date Completed Cert on File 1 1 5/9/2025 Yes 2 3 4 5 6 Hours Completed Date Completed Cert on File 1 2 3 4 5 6 Hours Completed Date Completed Cert on File 1 2 3 4 5 6 8 NIAFPD Conference Certified Trustee Training Buffalo Grove Fire Dan Pasquarella Hours Required Type of Training Josh Himmelspach Hours Required Type of Training 8 Tom Gough Hours Required Type of Training 8 Larry Stanley Hours Required Type of Training 8 FPIF Board Meeting Chris Black Hours Required Type of Training 8 Hours Required Type of Training Page 1 of 1 238 of 246 239 of 246 240 of 246 2025 IPPFA MidAmerican Pension Conference October 1 - 2, 2025 8:00AM - 5:30PM 3500 Midwest Road Oak Brook, IL 60523 Julie Guy October 1 – 2, 2025 The MidAmerican Pension Conference is the perfect way to complete your 8-hours of pension trustee training. Highlights include dynamic speakers, informative exhibits, and many networking opportunities. For over 30 ƘāÖũŭ̇ŶĞāRDĞÖŭėĢƑāłÖŶŶāłùāāŭŶĞāƑāũƘðāŭŶŶũÖĢłĢłėĢłāŶĞĢóŭ̇ƩùŽóĢÖũƘũāŭťŋłŭĢðĢķĢŶĢāŭ̇ÖłùķāėÖķÖłù legislative updates, all covering every aspect of pension trustee training. This year marks the 40th anniversary of IPPFA, and we invite you to celebrate this milestone with us during the conference! PLEASE NOTE THAT THIS CONFERENCE HAS BEEN CHANGED TO TWO FULL DAYS (WEDNESDAY & THURSDAY). Registration CONFERENCE REGISTRATION IS NOT OPEN AT THIS TIME. PLEASE CHECK BACK LATER. Rooming Oak Brook Hills Resort 3500 Midwest Road Oak Brook, IL 60523 Rooming rates start at $189 per night (plus $14.95 resort fee) Heroes Family Fund Charity Golf Outing Registration Tuesday, September 30th Willow Crest Golf Club 3500 Midwest Rd. Oak Brook, IL 60523 241 of 246 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 Municipality, (please print or type) District, or Firm: _____________________________________________ Address: _________________________________________________ City: ____________________________________________ , IL Zip: ____________ Phone: _____________________________ SEMINAR FEES: IPFA Members: $ 230.00 Non - Members: $ 320.00 Walk-In Registration: $ 340.00 Avoid the walk-in surcharge – register on or before Monday, November 3, 2025 Registration opens at 07:00, event begins at 08:00, & ends at 16:00 First Name: Last Name: e-mail Address: Member Non-Member ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ TOTAL CHECK ENCLOSED $_______.____ Payment must accompany this Registration Form and be received in our office on or before November 3, 2025 to qualify for lower rates. Reservations received after the above date will be charged walk-in registration fee. Requests for refunds must be received on or before Monday, November 3, 2025 for full fee credit. No credits of seminar fees after this date. Please mail the completed form to IPFA, 188 Industrial Drive, Suite 134, Elmhurst, IL 60126-1608, fax it to 630-833-2412, or scan & e-mail to ipfa@aol.com.Any questions, call 630-833-2405. For Tax Reporting Purposes our Federal I.D. Number is: 36-2650496. The Illinois Pension Statute requires continuing education for all pension board trustees. This seminar provides up to 8 hours of credits. For IPFA Office Use: Date: ___________ Check #: ___________ Amount: _____________ Payer: ________________________________________ ___________________________________________________________________________ 242 of 246 243 of 246 244 of 246 Course Titles Administrative Review 0.75 hours New Articles 3 and 4 Pension Disability Pension Overview 2.50 hours Board Oversight of Cyber Risk: Before a Breach 2.00 hours Cyber Security: Best Practices 1.00 hour Developments and Potential Changes in Federal and State of Illinois Labor and Employment Laws 1.50 hours Duties and Ethical Obligations of a Pension Fund Fiduciary 1.50 hours Felony Divestiture 0.75 hours New How to Identify, Address and Prevent Sexual Harassment & Discrimination 1.00 hours Illinois Court System and Standard of Review 1.00 hours New Illinois Freedom of Information Act and Open Meetings Act 1.50 hours Illinois Public Employee Disability Act and Public Safety Employee Benefits Act 1.50 hours Let Me Ask You A Question 2.00 hours Managing Generational Differences and Unconscious Bias in the Workplace 1.50 hours Mock Disability Pension Hearing 1.75 hours New Pension Plan Assumption 101: Common Approaches to Setting Actuarial Assumptions 0.75 hours Pension Plan Funding 101: The Basics of Public Pension Funding Mechanics 0.75 hours Pensionable Salary Under Articles 3 and 4 1.00 hour New Public Pension Fund Accounting Principles 0.50 hours QILDRO Training 1.00 hour New Qualified Illinois Domestic Order “QILDRO” 1.50 hours Various Benefits Training 2.00 hours New Credit Hours Pension Trustee Training Course 245 of 246 BUFFALO GROVE FPF / General / Trustee Training at Board Meetings -- Documentation for FY Ending 12/31/2025 Buffalo Grove FPF Trustee Training at Board Meetings Documentation for FY ending December 31, 2025 Prepared August 4, 2025 Date of Meeting/Training Training Topics Covered Trustees in Attendance / Receiving Training Credit Training Time August 4, 2025 Pension Insights for Third Quarter 2025 – Investing in Members (presented by Carolyn Welch Clifford from Ottosen DiNolfo) Fiduciary Insights – July 2025 (presented by Carolyn Welch Clifford from Ottosen DiNolfo) IAFPD Fire Call Pension Pointers Spring 2025 – Social Security Fairness Act (presented by Carolyn Welch Clifford from Ottosen DiNolfo) IAFPD Conference Presentations – June 2025 (presented by Carolyn Welch Clifford from Ottosen DiNolfo) 246 of 246