U.S. citizens aged 18 and older who have lived in Alaska for more than a year receive a dividend of about $1,700 (this amount fluctuates annually based on oil prices) every October.

This dividend is paid to all residents regardless of income, and wealthy individuals are not exempt from receiving it.

https://pfd.alaska.gov

The amount of the dividend is determined by the revenue from oil sales in Alaska and the performance of the fund, and it is paid based on the same criteria regardless of individual income or assets. The important point is that residency requirements must be met. In other words, any U.S. citizen who has lived in Alaska for more than a year and intends to continue living there can receive it.

However, some high-income individuals argue that the PFD payment is unnecessary for wealthy people. Nevertheless, Alaska's law applies this without discrimination.

The Alaska Permanent Fund system is an important economic structure that distributes natural resource revenues to Alaska residents, playing a central role in Alaska's economy since 1976.

The core of this system is to allocate a portion of the natural resource revenues generated in Alaska to the permanent fund, which then pays dividends to Alaska residents from the earnings.

• Eligibility:
  • Residents of Alaska aged 18 and older can receive the PFD if they meet certain conditions.
  • To receive the PFD, one must have lived in Alaska for more than a year and must reside in the state for at least 12 months after moving.
• Dividend Amount:
  • The PFD amount varies each year, and in 2023 it was 1,702 dollars.
  • The dividend fluctuates based on Alaska's oil revenues.

To receive government assistance, including the PFD in Alaska, the following conditions must be met:

1. Must have lived in Alaska for at least 12 months.
2. Alaska residency registration: You must register as a resident of Alaska and provide documentation to prove it.
3. Other requirements: For example, proof of residence, driver's license, or changes to residence address may be required.

Background of the Alaska Permanent Fund

After oil was discovered in Prudhoe Bay in 1969, Alaska experienced rapid economic growth, but there were issues with uneven distribution of that revenue or ineffective utilization. Consequently, in 1976, the Alaska Permanent Fund Act was enacted, which mandated that 25% of natural resource revenues be allocated to the fund, which would then be invested to generate returns to support the state budget and the welfare of residents.

The fund began to be established in earnest in 1980, starting with the initial oil sales revenues. By 2015, the fund's assets reached $53.7 billion, and it has continued to grow steadily since then.

The Alaska Permanent Fund is an important financial resource based on oil sales revenues. According to the law enacted in 1980, 25% of oil sales revenues are collected as taxes and allocated to the fund, which is then increased through various investment returns.

The Alaska Permanent Fund 

• Principal Composition:
  • 25% of oil sales revenues
  • Additional amounts allocated based on decisions by the state legislature
  • Amounts from investment returns excluding bond dividends and inflation-proofing funds
• Utilization of Earnings:
  • Bond dividends: Paid to Alaska residents
  • Inflation-proofing funds: For inflation protection
  • Fund operating costs: Used for operational expenses
  • Investment: The remaining amount is reinvested into the principal for further investment

The permanent fund invests in various assets to generate returns. The main investment assets are as follows:

• Stocks: 38% (U.S. 62%, North America 10%, UK 6%, Europe 12%, Japan 6%, Asia 3%, Other 3%)
• Bonds: 22% (M&A 36%, corporate 31%, non-dollar 17%, foundation 14%, agency 2%)
• Real Estate: 12% (commercial properties 31%, multi-family 29%, office 29%, industrial 7%, real estate investment trusts 4%)
• Others: private equity 6%, absolute return funds 6%, infrastructure 3%, cash 2%, others 11%

Bond Dividends

The bond dividends paid to Alaska residents have been distributed annually since 1982. The dividend amount is determined by various factors such as stock prices, and the dividend amount is calculated based on 21% of the total interest income over the past five years.

Conditions for Dividend Payment

• Eligibility: U.S. citizens who have lived in Alaska for more than a year
• Exclusions:
  • If arrested as a criminal under Alaska law during the evaluation period
  • If detained due to a crime

The Alaska Permanent Fund system serves as a strategy to prepare for climate change and the depletion of oil resources, providing a stable source of income for Alaska residents. The fund's earnings are primarily diversified into stocks, bonds, real estate, etc., and a portion of those earnings is paid to Alaska residents annually in the form of dividends.

This system significantly contributes to Alaska's economic growth and the improvement of residents' welfare, and every October, stores and service providers hold discount events to stimulate consumption for dividend payments, thus revitalizing the local economy.

The permanent fund system is an important example of building a sustainable economic model in resource-rich areas like Alaska, providing a valuable system that other regions or countries can reference.