Permanent Fund Dividend Division - State of Alaska 4.42

In 1976, voters of the State of Alaska established the Permanent Fund as an amendment to the Alaska Constitution. The Permanent Fund Dividend Division was established in 1982 following legislation in 1980 that enacted dividend payouts from the Permanent Fund to residents of the State of Alaska. A Supreme Court ruling in 1982 cleared the way for annual, equal payments to be made to all Alaskans who qualified for the dividend. The first payment in 1982 was $1000.00 for the first three years the program existed, and it has varied in amount each year since ranging from $331.29 (1984) to $2069.00 (2008).

The Permanent Fund Dividend Division is responsible for determining applicant eligibility for the distribution of the annual dividend that is paid to Alaska residents from investment earnings of mineral royalties. The annual payment allows for Alaskans to share in a portion of the State minerals revenue to benefit current and future generations. Eligibility to receive a Permanent Fund Dividend is defined by the Alaska Legislature through Statute and Regulation. The dividend calculation is based on the number of eligible Alaskan applicants in a dividend year and half of the statutory net income averaged over the five most recent fiscal years. The available funds are also reduced by prior-year dividend obligations, PFD operational expenses, and other legislative appropriations. The Alaska Permanent Fund Corporation is responsible for investment of the funds principal balance, which ultimately yields the annual pool of funds available for distribution and program operations.