Your Questions – Answered! Spring 2022 Distribution
Tuesday, April 5, 2022
Sealaska’s spring 2022 distribution will be announced on Friday, April 8. Distributions are just one of many benefits Sealaska provides to shareholders and descendants, including educational and professional development programs like shareholder and workforce development opportunities; vocational training, scholarships and internships; and donations to community and cultural programs.
Answers to frequently asked questions about the distribution process and timeline are below. Don’t see the answer you’re looking for? Contact us at corpcomm@Sealaska.com and we’ll track down the information you need.
Q: What is the spring distribution schedule?
- Friday, April 8 Distribution Announced | View pending distribution amount at MySealaska.com.
- Friday, April 8 Record Date | Last day to make changes to stock, gift stock, enroll, process estates or transfer shares.
- Monday, April 18| Last day to change shareholder banking or mailing information.
- Friday, April 22 | Date of distribution
Q: How are Sealaska distributions calculated?
All shareholders (Class A, B, C, D, E, L) receive payments from Sealaska business operations as well as the Marjorie V. Young Shareholder Permanent Fund (MVY). Beginning with the fall 2021 distribution, payments from operations and MVY were routed through the newly established Sealaska Settlement Trust.
Urban and At-Large shareholders (Class B, C) receive an ANSCA Section 7(i) payment as well. 7(i) payments are not eligible to be routed through the Sealaska Settlement Trust and will come directly from Sealaska as they always have. For Class B and C shareholders, this means they will receive two separate payments — one from Sealaska operations and the MVY shareholder permanent fund made via the settlement trust, and one 7(i) payment from Sealaska.
Q: Why do Urban and At-Large shareholders (Class B, C) get additional money?
All shareholders, directly or indirectly, benefit from Section 7(j) of the Alaska Native Claims Settlement Act (ANCSA). ANCSA Section 7(i) requires that all ANCSA corporations share 70% of their revenues from natural resource development with one another. This provision was created because some regions have more lucrative natural resources than others. Section 7(j) requires that 50% of the shared resources Sealaska receives from other ANCs are distributed equally between the 10 Southeast village corporations in our region and our Urban (Class B) and At-Large (Class C) shareholders.
Holders of Class B and C stock are not shareholders of village corporations, so they receive their 7(j) payments directly from Sealaska. It is up to the village corporations to decide how to use their ANCSA Section 7(j) payments, which can include dividends or other benefits.
*Class “E” shareholders (Elders) and Class “L” shareholders (Leftouts) do not receive ANCSA Section 7(j) payments.
Q: Why do Descendant and Leftout shareholders receive a smaller amount than other shareholders?
The difference is that they do not receive ANCSA 7(i) payments. Both of these types of shareholder stock, along with Elder stock, were created after ANCSA and are not eligible for ANCSA 7(i) payments.
Q: What is ANCSA Section 7 (i) and (j)?
Under ANCSA the 12 regional corporations share a portion of natural resource revenues. This is known as the ANCSA Section 7(i) revenue sharing agreement. Payments from Section 7(i) are called Section 7(j) payments.
Q: How are ANCSA Section 7 (i) and (j) Payments Made?
- Class A— Under ANCSA, Class A (Village) shareholders do not receive payment. The payment is directed the village corporations in the region, which decide how to use funds.
- Class B— Under ANCSA, Sealaska makes direct payment to shareholder.
- Class C— Under ANCSA, Sealaska makes direct payment to shareholder.
- Class D— Under 2007 shareholder vote, Class D shareholders do not receive payment.
- Class E— Under 2007 shareholder vote, Class E shareholders do not receive payment.
- Class L— Under 2007 shareholder vote, Class L shareholders do not receive payment.
Q: How much is my check?
Sealaska shareholders who have registered with MySealaska.com can view pending payments when a distribution is announced. The spring 2022 announcement will be made on Friday, April 8.
Q: Will my distribution payment be lower because of the settlement trust?
The Sealaska Settlement Trust will not change the amount of the distribution. Distribution amounts are determined under the same formula that has been in place for many years. The major benefit of the settlement trust comes from the fact that distributions made via the Sealaska Settlement Trust are not subject to federal income tax. (ANCSA Section 7(j) dividends are still subject to federal tax.)
Q: When will shareholders receive a payment through the Settlement Trust?
Shareholders started receiving payments through the settlement trust in the fall of 2021. The spring 2022 distribution is expected to reach shareholders with direct deposit on April 22; shareholders who receive paper checks will receive them in the mail a week to 10 days later.
Payments from Sealaska operations and the Marjorie V. Young Shareholder Permanent Fund will pass through the settlement trust. For example, if you receive $100 in payments from operations and MVY, you will receive $100 from the Sealaska Settlement Trust.
If you have additional questions about the Sealaska Settlement Trust, a detailed Q&A is available here.
Q: Why is the ANCSA 7(j) payment low this time?
Commodity pricing is affecting the income of Native corporations, so we are seeing a lower amount go into the natural resource revenue sharing pool.
Q: I use the MySealaska app on my mobile device, but only see one pending distribution amount.
The MySealaska app is no longer supported, and is not available on Google Play and the Apple app store. The 2022 spring distribution is not displaying properly on the app because it was not designed to display distributions associated with Sealaska’s new settlement trust. If you are still using the app on your mobile device, please note that the phone app has been replaced by the mobile website. Please open a browser on your phone, go to MySealaska.com and log in.
Q: My check is a lot lower than usual. I thought the Sealaska Settlement Trust was supposed to save money. What happened?
The Sealaska Settlement Trust will save shareholders money because distributions made as a result of earnings from Sealaska’s business operations and earnings on its investments will be routed through the trust and will no longer be subject to federal income tax.
If you are a Class B or Class C shareholder, though, you will probably notice that your distribution this fall is lower than normal. This has nothing to do with the Sealaska Settlement Trust. Payments from ANCSA Section 7(j) are down considerably due to the impact the pandemic had on commodities prices like oil, natural gas and certain minerals. Section 7(j) payments come from the natural resources revenue earned by other Alaska Native corporations and shared collectively under ANCSA Section 7(i). With prices for resources produced by other ANCs on the decline, we can expect to see payments from ANCSA Section 7(j) decrease as well.