Page 1

PFD Savings 2013 2013 PDF.indd 1


0 . 0 0 0 9 A supplement to the September 29, 2013 edition

9/28/13 3:52 PM

Why d

Historical timeline of the PFD


Voters pass a constitutional amendment to establish the Permanent Fund (Alaska Constitution, Article IX, Section 15).

office closed in September 1991 (2 positions). One position each transferred to Anchorage and Juneau office. First receipt cards mailed.

application implemented March 2000 (applicants required to sign signature page only). Fairbanks office moved to Cushman Street location September 1.




First Permanent Fund dividend legislation enacted. The legislation established a program giving every adult Alaska resident $50 for every year of residency since statehood in 1959 and also established a Dividend Fund. Payment of dividends were stayed under litigation (Zobel v Williams) challenging the constitutionality of the program.


U.S Supreme Court ruled the 1980 legislation unconstitutional. In response to the litigation, the legislature passed legislation authorizing equal dividend payments to all six-month residents. The first dividend amount was $1,000. The first dividend checks were distributed June 14, 1982.

1983 30.

Residency period defined as 6 months ending March 31. Filing due date established as June


Hold-harmless program funding for public assistance recipients changed from General Fund to Permanent Fund Dividend Fund.


January 1988 - Permanent Fund Dividend Division established. Positions with PFD responsibilities in Administrative Services (20), Enforcement (23), and Public Services (14) transferred to the new division. Enforcement and Public Services divisions eliminated.


Legislature changed residency period from 6 months to 24 months. Individuals banned from assigning dividends (except to government agencies) by regulation. Felons not eligible for dividends. Physical presence requirement established.


Superior Court ruled 24-month residency requirement unconstitutional and changed the residency requirement to 12 months (Lindly v Malone). Disclosure requirements established to print program costs on dividend checks.


Check-off program for Advance College Tuition started. Percent of dividend subject to levy for private judgments increased from 50% to 55%. Fairbanks

Page 2

2013 PDF.indd 2

Individuals banned from assigning dividends (except to government agencies) by statute. Review Unit moved from Anchorage to Juneau.


Direct-deposit program for full dividends established. Residency period changed to calendar year. Voter registration forms included with dividend application.


Filing due date changed to March 31. Longevity Bonus Annuity check-off program began. Legislature authorizes the division to charge fee for processing claims and assignnments on dividends

1995 1996 1997 1998

Longevity Bonus Annuity check-off program repealed. Misdemeanants with two prior crimes not eligible for dividends.

Fairbanks office re-opened February 1997 (2 positions).

Internet program implemented to allow applicants to check their status online. All allowable absences defined in statutes (statutory provision for commissioner to define absences by regulation repealed). Spouses accompanying eligible residents authorized as allowable absence. Authority to file for estates (persons who die during filing period) established. Physical presence changed to 72 hours every two years (effective for 2000 dividend). Percent of dividend subject to levy for private judgment increased from 55% to 80%.


On-line application implemented, but applicants required to print and sign full application. Direct-deposit program expanded to include partial dividends. Document Processing Unit night shift (17 positions) eliminated. Emergency regulations detailing alien eligibility adopted.


Imaging system and new data entry system implemented January 2000. First year that applications imaged. Improved on-line Internet


Review and Appeals units consolidated into the Dividend Enforcement, Review and Appeals Unit. Alaska Supreme Court rules that immigrant aliens who form intent to remain in Alaska qualify for dividends.


Receipt letter replaces application receipt card. Department of Health and Social Services files applications electronically. Final year securities companies participated in the direct deposit program. Misdemeanants with one prior felony or two prior misdemeanors not eligible for dividend.


Online applications exceed 100,000 (155,226). Electronic signature for online applications implemented March 20, 2003. All review cases worked by year-end. Fraud Investigations moved from Anchorage to Juneau.

During Pipeline ed state to explo Legislat initial le kans rea a great d the pipe better sa coming constitu funds. S the cons money i nent Fu future g have oil ernor H amendm Alaska L legislati tion in t by a ma


The 19


Receipt letters eliminated. Online application expanded to cover full application and supplemental schedule. Tri-fold direct deposit advice implemented. Selective Service registration part of the application.


Online applications exceed 200,000 (211,464) and electronically signed applications exceed 100,000 (129,822). Time period for applicants to respond to requests for information changed to 30 days.


Over 2/3 of Alaskans apply online (420,596) and electronically signed applications exceed 275,000 (276,203).


One time resource rebate added to dividend. Payment timing moved up to September in response to high energy costs. New eligibility software program implemented.


The Charitable Contribution program, Pick.Click.Give is implemented allowing applicants to donate all or part of the dividend to nonprofit agenices.

SEPTEMBER 29, 2013

9/28/13 3:52 PM



During construction of the Trans-Alaska Pipeline in the 1970’s, oil companies flooded state coffers with money paid for leases to explore and secure drilling rights. The Legislature spent all $900 million of that initial lease money within a few years. Alaskans realized that they were about to receive a great deal more money from oil when the pipeline was complete. They wished to better safeguard the robust income forthcoming from the pipeline, but the state constitution did not allow for dedicated funds. So Alaskans voted in 1976 to amend the constitution to put at least 25% of the oil money into a dedicated fund: the Permanent Fund. This would save money for future generations, which would no longer have oil as a source of income. In 1976 Governor Hammond proposed a constitutional amendment to create the Fund. The 9th Alaska Legislature modified the governor’s legislation and placed it as a ballot proposition in the 1976 General Election. It passed by a margin of two to one.

What is the purpose of the Permanent Fund? The 1976 state law establishing the Perma-

nent Fund (AS 37.13), states that the Fund was created: • to provide a means of conserving a portion of the state’s revenue from mineral resources to benefit all generations of Alaskans • to maintain safety of principal while maximizing total return • to be a savings device managed to allow maximum use of disposable income for purposes designated by law

How is the Fund invested? The Board’s goal is to achieve an average annual real rate of return of five percent (5%) at risk levels broadly consistent with large public and private funds. In order to meet this goal, the Board sets an asset allocation that includes holdings across a broad range of investments. Information regarding the Fund’s current investments can be found in the Investments section of this site.

trends upward over time. In the U.S., the Fund is larger than any endowment fund, private foundation, or union pension trust.

Are some Fund investment classes too risky?

What happens to Fund income?

Stocks are the most volatile asset class and are high risk in the short run. But for long-run investors like the Permanent Fund, there’s actually a greater risk to be out of the stock market than to be in it. The long-term trend of stock prices is more steeply upward than that of other asset classes. Stocks advance in 6 out of every 10 years, in 72% of all 5-year periods and in 77% of all 10-year periods. One study

The Legislature decides how Fund income is used. To date, the Legislature has: • inflation-proofed Fund principal • paid dividends to qualified applicants • made special appropriations to the principal • paid for some Fund-related state expenses


Spend You

AW S I L L A t A $ Wisely

How big is the Permanent Fund? The current value of the Permanent Fund can be found on this site’s home page where it is updated daily. The value can fluctuate up or down with market movements, but


Why did Alaskans create the Fund?

376-3177 • In our NEW Wasilla Location at City Center

Please join us in our 2013-14 Faculty, Staff, Alumni, and Friends Giving Campaign. In these challenging �mes, students are nding it increasingly difficult to pursue their educa�on without nancial support. Through our giving, we can expand educa�onal opportuni�es for even more students at Mat-Su College. 745.9774

SEPTEMBER 29, 2013

2013 PDF.indd 3


Page 3

9/28/13 3:52 PM

Gallery The



Meet Robert J. Clayton and Come See his New Original Paintings

looked at the 62-year period from 1926 through 1987. It showed that if an investor had been out of the stock market only during the 50 best market months (which would be only 7% of the total months in the 744-month time span), total return for the 62 years would have been zero, rather than more than 10% compounded annually had she stayed the duration. The Fund is now also invested in alternative investments, including private equities, hedge funds and public infrastructure. Gradual exposure to these classes will be in keeping with how the Fund has started out in stocks...dedicating just a small percentage of the Fund’s total value as Trustees gain knowledge and experience investing in a new asset class.


Up selected art Sale prices good through13. 0 October 13, 2

Could there be no dividend in some years?

Mon-Fri 10-6, Sat 10-5, Sun 11-4 1150 S Colony Way • Palmer 745-1420 Open 7 days a week, Closed on holidays XNLV112754 • • Voted Best Gallery in the Mat-Su 2012

Yes. The Alaska Constitution states that the Fund’s principal cannot be spent. The dividend can only be paid from Fund earnings. If the earnings reserve is zero or negative on June 30, no money can be paid out. APFC Trustees are proposing a better method for determining Fund annual payout that would require a change to the constitution through a vote of the people. The Percent of Market Value (POMV) payout method would remove the distinction

between principal and earnings, treating the Permanent Fund as one pot of money. Five percent of the Fund’s total market value could be paid out each year.

How is the Fund doing? The Fund is doing well, and over the years has paid out more in dividends than it has taken in from mineral deposits while maintaining a healthy balance. Current, detailed information on the Fund’s performance by asset class and overall can be found in the Monthly Performance Reports and Annual Reports that are posted in the Publications section of this site.

Why is the Fund successful? It was created by a Constitutional amendment. The APFC, which manages the Fund, receives legislative oversight. The dividend program keeps the Fund in the public eye. The Fund has sound management practices, including performance oversight of managers. The Fund is not used as an economic development bank.

Get that Christmas gift or needed care now

for your loved one and get your best savings of the year.

8 care hrs .................. 200 12 care hrs ................$280 16 care hrs ................$350 20 care hours ............$400 $

Save Up To 300 $

Page 4

2013 PDF.indd 4

Comfort Keepers offers all of these services to help you maintain your independence: • Personal Care • Housekeeping • Meal Preparation • Shopping • Laundry • Medication and Calendar Reminders • Personal Emergency Response System 2013 PFD SPECIAL

When can ma

Streng hand, profits


745-3000 PFD SPECIAL

If you With o Alaska

• Care Coordination • Nursing Care • Transportation • One Time Care After Medical Procedures/ Day Surgery

Fo Oc




306 XNLV110895

SEPTEMBER 29, 2013

9/28/13 3:52 PM



The success of Pick.Click.Give. grows every year. When you go online to apply for your dividend, you will see the Pick.Click. Give. option. Click and follow the instructions to make your donation. Organizations across Alaska are part of the program this year. You’re likely to find one you already support, and you can use Pick.Click.Give. to make an additional gift. Or you may find a new nonprofit whose cause is important to you, and you can donate to that organization. You may give all or part of your dividend, whatever is appropriate for you and your family. We simply encourage you to give.

Stock Up Now

On your Card Stamping & Scrapbooking Supplies

If you give...and your neighbor does...and will add up quickly. With one donation at a time, we can make good things happen all over Alaska.

• “Great

Impressions” - Stamp of the month vendor Classes • Stampscapes • Copic Markers • Tim Holtz • Pink Ink Stamps • Cuttlebugs • Sizzix • Memory Box Stamps & Dies • Rosie’s Roadshow Stamps •

When you make a donation from your PFD through Pick.Click.Give., you can make an impact by sharing just a little with a cause you care about. XNLV111238

Strengthen the arts, invest in education, shelter a homeless pet, lend a hand, or even make a wish come true when you give to one of Alaska’s nonprofits

642 S. Alaska St. (Koslosky Center) 642 S. Alaska St., Palmer T-F Sat1010T-F•11•11- 66 •• Sat 55

(907) 745-4848

10% off with this ad! Offer Expires 10/31/13

Valley Country Fuel For Every $500 Spent On Heating Fuel Thru the month of October You Will Be Entered Into A Nov. 1st Drawing For a

500 GRAND $250



2 First Place Prizes Of worth of HeatingOil

Open For Pickup 8am-11pm-7 days a week. 3065 N. Church Road Wasilla.

Call For Delivery 24/7 SEPTEMBER 29, 2013

2013 PDF.indd 5




Page 5

9/28/13 3:52 PM

r u o y e t bra a Celew th i D F P


new o or tatto t?)! hy no

oth (w

or b


2011 – $1,174.00 2010 – $1281.00 2009 – $1305.00 2008 – $2069.00 2007 – $1654.00 2006 – $1106.96 2005 – $845.76 2004 – $919.84 2003 – $1107.56 2002 – $1540.76 2001 – $1850.28 2000 – $1963.86

Open Every Day 12-9pm



… g n i c pier





• Cardio & Weights • Group Exercise Classes • Personal Training & Nutrition Services • 5 Full Court Basketball/Volleyball Courts with Leagues & Open Play • Childcare Play Center & Youth Classes • Indoor Track • Snack Bar

SPORTS CENTER View our promotional video, class schedules, league info and more at

• Locally Owned & Operated

1507 N. Double B St. • Palmer (3/4 mile west of Trunk Rd on the Palmer-Wasilla Hwy)

7GO.PLAY (746.7529)

Our services include:

Goldwell color application, customized haircuts, facial waxing, shellac manicures, up styles, thermal styles, blow outs, customized permanents, color correction Professional consultations. Elumen certified staff.

We carry Brands: Goldwell, KMS California, Schwarzkopf, Malibu, Moroccan Oil, Aero Gel, Cerepil wax. Can supply other Brands upon request

with purchase of a winterizing conditioning treatment Must have coupon present to redeem

Expires 11/30/13

Expires 11/30/13



* Some exclusions apply.

with purchase of men’s haircut

Must have coupon present to redeem

with any chemical service

Must have coupon present to redeem

Open 7 days a week. 9 a.m. - 6 p.m.

Poly M

Bring us purchas

earlier and/or later appointments available upon request

Metal Mosqu


(907) 373-5326 | 609 Knik Goose Bay Rd., Suite B, Wasilla AK 99654 | Page 6

2013 PDF.indd 6


SEPTEMBER 29, 2013

9/28/13 3:52 PM


PFDs of the 1980s & 1990s 1982 – $1000.00 1983 – $386.15 1984 – $331.29 1985 – $404.00 1986 – $556.26 1987 – $708.19 1988 – $826.93 1989 – $873.16 1990 – $952.63

1991 – $931.34 1992 – $915.84 1993 – $949.46 1994 – $983.90 1995 – $990.30 1996 – $1130.68 1997 – $1296.54 1998 – $1540.88 1999 – $1769.84

Burke’s Military & Flags 490 E. Railroad Ave., Wasilla, AK 99654 Mon - Fri 11am-5pm Business Phone: (907) 355-8817 Website: Poly Max Flags U.S. 3x5’ AK 3x5’

Bring us your old flag and get $3.00 off your purchase of a new 3’x5’ or larger!

Veteran Owned and Operated For 17 Years SEPTEMBER 29, 2013

2013 PDF.indd 7

AR-15 Magazines Wool Blankets Poncho Liners Issue Wool Sweaters Survival Rations

T-Shirts Veteran Ball Caps Pins, Patches, Plate Frames and more!

Our Customer’s Say, “I Found My Stuff at Burke’s” 2013 PFD SPECIAL


Metal Ammo Cams Mosquito Nets

Hoodies Sweatshirts BDU’S, ACU’s, Wool Issue Pants MRE’s Bunny Boots

Great PFD Deals Are Here! 25% discount store-wide.

Find Us On Facebook!

Page 7

9/28/13 3:52 PM

Bounceback Bucks

October 9th to November 24th

Purchases are valid from Oct. 3rd to Oct. 8th, 2013 Redemption dates are Oct. 9th to November 24th, 2013

Receive a

Bounceback card for

$20 $40 $75

when you spend $150 - $299

Receive a

Bounceback card for

when you spend $300-499

Receive a



ak pfd bounceback bucks


Bounceback card for

Spend $150 to $299 and get a $20 Bounceback Card Spend $300 to $499 and get a $40 Bounceback Card Spend $500 or More and get a $75 Bounceback Card

Bounceback Bucks can only be earned on purchases made between 10/03 and 10/08/2013. Bounceback Bucks must be redeemed in full in a single transaction between 10/09/13 and 11/24/13. Not redeemable for cash, license or gift card. Cannot be combined with other discounts or offers. Valid in store only Oct. 9–Nov. 24, 2013

Valid at any Sportsman’s Warehouse Alaska store. – Anchorage, Fairbanks, Wasilla, Soldotna – You must present this coupon at time of purchase.


when you spend $500 or more

Great Deals on Garmin Products, Firearms, Clothing, Footwear, Camping Gear & More! WASILLA

8681 Old Seward Highway

1901 E Parks Highway



(907) 644-1400

423 Merhar Avenue

(907) 374-8800

(907) 864-8000

44402 Sterling Highway


Page 8

2013 PDF.indd 8


SEPTEMBER 29, 2013

9/28/13 3:52 PM


Permanent Fund Dividend, PFD Savings