Living in Alaska has endless perks. From fresh air to vast public lands, this state offers the promise of serenity and remoteness to every resident. However, one of the biggest perks that locals enjoy is Permanent Fund Dividend (PFD), an annual cash payment made to eligible all Alaskans.
Every year, the PFD is paid directly to every resident, in the form of a check or a direct deposit. Many Alaskans depend on the PFD to help offset the high cost of living throughout the state, while others use the money to invest in business ventures, take family trips, or stash away for a rainy day. Regardless of how each household chooses to use their PFDs, the existence of this fund and the value Alaska places on encouraging new residents to the state, makes the Last Frontier an inviting opportunity for those seeking out a new adventure.
In this article, we’ll discuss the history of how Alaska started paying residents to live there, average amounts households can expect to receive, and how you can qualify. Be prepared – at the end, you might be packing your bags and preparing to move your family up north to take advantage of this amazing benefit!
What is the Permanent Fund Dividend (PFD)?
The PFD is a cash payment made to eligible Alaskan residents, sourced from the Alaska Permanent Fund (APF). The APF was established in 1976 by an amendment to the Alaska State Constitution, with the purpose of conserving a portion of the state's oil revenue for future generations. The PFD program began in 1982, and since then, it has been distributing dividends annually to eligible residents, ensuring that they share in the wealth generated by Alaska's natural resources.
The History of the PFD
In 1968, oil was discovered in Prudhoe Bay, on the northern slope of Alaska. A state that has historically prioritized conservation and community-building, the Alaska state government was tasked with coming up with a solution for how to take advantage of this opportunity, while ensuring that the wealth went towards improving the state and resident livelihood in the long term.
In 1976, the Alaska Permanent Fund (APF) was created, and it was funded with at least 25% of the state's oil revenues. The idea was to create a financial buffer for the state, which would benefit both current and future residents. The APFinvests a portion of the state's oil revenue in stocks, bonds, real estate, and other assets, allowing for profits to build with time and take advantage of economic growth.
In 1982, the first PFD checks were distributed, amounting to $1,000 per eligible resident. Since then, the PFD has become an integral part of Alaskan life, providing financial support to residents and playing a significant role in the state's economy.
Calculating the PFD and Estimates for the Last 5 Years
The PFD amount varies each year, depending on the performance of the Permanent Fund's investments and other factors. The Alaska Permanent Fund Corporation (APFC) calculates the annual PFD amount using a five-year average of the fund's realized income. The formula considers the total income generated, the number of eligible applicants, and other administrative costs. Here are the estimated PFD amounts for the last 5 years:
2022: $2,250
2021: $1,114
2020: $992
2019: $1,606
2018: $1,600
It's important to note that these amounts can differ slightly from future PFD disbursements. The PFD amounts can vary significantly from year to year based on the fund's performance and the state government's decisions.
Additionally, while this may sound like a lot, many households must use the PFD to offset the extremely high cost of living in remote communities, where the cost of groceries, gasoline, and utilities can be three to four times as much as in Anchorage.
Who Qualifies for the PFD?
To qualify for the PFD, an applicant must meet specific residency and other criteria. The primary eligibility requirements for the 2023 PFD include:
- Being a resident of Alaska for the entire calendar year preceding the application deadline (January 1st to December 31st).
- Having the intent to remain an Alaska resident indefinitely.
- Not claiming residency benefits in any other state or country.
- Have not been absent from the state for more than 180 days in the qualifying year, unless for an allowed absence
- Been physically in Alaska for at least 72 consecutive hours during 2021 or 2022.
- Not been sentenced or incarcerated due to a felony conviction during 2022.
- Not been sentenced or incarcerated due to a misdemeanor conviction in Alaska if the individual has been convicted of a felony or two-plus misdemeanors since January 1, 1997
Every year, residents need to submit a new application by March 31st, with payments usually sent out in late summer/early fall (typical payments usually occur in October). Alaskans can file online on the state website or mail a paper application.
Adults and children qualify for a PFD payment, so many households may receive multiple payments depending on how many individuals reside there. Married couples will need to file separately for applications, as every individual must have their own application. Additionally, PFD payments are not tax-exempt, so taxes will need to be deducted each year by the receiving party.
Becoming an Alaskan Resident
While the PFD isn’t the main reason to move to Alaska, it is definitely an attractive incentive. If you’re already in love with moving to a remote and beautiful destination, adding in a nice annual bonus definitely doesn’t hurt.
Ready to become a resident? Interested applications will need to provide one of the following as proof of their residency:
- Receipt of moving household belongings to Alaska (not paid by an employer)
- Lease or rental agreement
- Proof of home purchase
- Moorage or boat harbor fees of a primary residence boat
- Employment proof (such as a W2)
- Alaskan Driver’s License or ID
- Vehicle Registration
- State of Alaska benefits claim
- Voter’s Registration
