Established by Alaskans for Alaskans

Fifty years ago, in 1976, Alaskan voters amended the state constitution to set aside a portion of the state’s revenues from oil and minerals to establish the Alaska Permanent Fund to benefit future generations of Alaskans.

“The generations who established and built the Permanent Fund prioritized the future of Alaska over their ability to take more for themselves. Fortunately for our state, they turned a time of short-term extraordinary wealth from nonrenewable resources into Alaska’s greatest renewable resource.  Fifty years later, it is our turn to lead to ensure that the Fund continues to serve Alaskans for generations to come.”

A portion of all oil and mineral revenues, along with special appropriations to grow the Fund and inflation proofing to maintain its purchasing power, are deposited into the Fund’s Principal. These contributions generate income that supports state services and the annual Permanent Fund Dividend (PFD), distributed directly to Alaska residents.

Annual withdrawals for state services and the PFD are governed by a Percent of Market Value (POMV) draw, calculated using a five-year rolling average of the Fund’s value. Set in statute at 5 percent, the POMV framework is designed to maintain and protect the Principal over time.

“As a Board, we are deeply honored to help steward a resource that now provides the majority of Alaska’s annual revenue. As we mark the 50th anniversary, I’m profoundly grateful for the collaboration across this state that has brought us to this milestone. Our responsibility is clear: to ensure the Fund remains strong and sustainable so it can serve generations long after us.”

The Board of Trustees also released an accompanying op-ed reflecting on the milestone, “Half a Century of the Permanent Fund: A Commitment to Generations of Alaskans.”