Calculating the permanent fund dividend.

• Author: Steffens, Michelle
• Position: Alaska Trends

The Alaska Permanent Fund Dividend (PFD) is determined using a State-created dividend formula. The formula is based on fiscal year calculations of statutory net income. In Alaska, statutory net income is an adapted form of realized earnings from investments of the Permanent Fund principal amount. Realized earnings from investments include stock dividends, bond interest, real estate rents, and net gains in assets sold. Due to Alaska law, the realized earnings value has been uniquely adjusted to exclude income derived from the Alaska v. Amerada Hess, et al settlement portion of the principal fund value.

To calculate the annual PFD, the formula begins by summing statutory net incomes for the current and previous...