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Senator describes 'Trustee Paper No. 10' constitutional amendment to protect Permanent Fund earnings
Summary
Senators described Trustee Paper No. 10, a proposed constitutional amendment to move the earnings reserve into the principal and cap withdrawals at up to 5% of market value; sponsors said it would require two-thirds legislative approval and a voter referendum (targeted 2026).
At a weekly Senate press availability, Senator Giesel summarized Trustee Paper No. 10, describing it as a structural change to how the Alaska Permanent Fund Corporation accounts and secures earnings. "The trustee paper number 10 is a savings plan. How to save money, keep it preserved in the permanent fund," Giesel said.
Giesel and other senators said the proposed constitutional amendment would remove the earnings reserve account, place earnings into the fund's principal, and allow up to a 5% draw of market value each year. The measure, sponsors said, is drafted as a joint resolution and must pass by two-thirds in both the House and Senate to be placed before voters; if approved by the legislature it would go to the public likely in 2026.
Senator Giesel cited materials presented to legislative finance showing that Permanent Fund earnings (the POMV component) currently make a large contribution to the unrestricted general fund: "in unrestricted general fund, the permanent fund's earnings ... funds 60% of the unrestricted general fund now," Giesel said. Supporters said converting to an endowment-style structure and limiting draws would preserve long-term growth and reduce the probability that the fund could not meet a chosen draw rate.
Senators noted the proposal is a structural change with long-term implications; they described the resolution as simple in language and emphasized that the final decision would rest with Alaska voters if the legislature places the question on the ballot. No committee vote or final legislative action occurred at the press availability; senators said the resolution will be formally introduced and routed to committee for review.
