CIRI Settlement Trust (CST) Distributions
CIRI shareholders approved the creation of the CIRI Settlement Trust (CST) in June 2019. In August 2019, the CIRI Board of Directors rescinded CIRI’s dividend policy in favor of contributing amounts that CIRI would have issued as dividends to the Distribution Fund of the CST for distribution to CST beneficiaries who are CIRI shareholders.
Beginning in 2020, until and unless otherwise modified by the Board of Directors, CIRI shall annually contribute 3.5% of the previous year’s ending shareholders’ equity balance attributable to CIRI to the Distribution Fund of the CST. As with the prior dividend policy, this contribution shall be made in four quarterly contributions, with the first three contributions equal to 24% of the total contribution and the fourth quarter contribution equal to 28% of the total contribution. Each such contribution shall be designated for payment to the CST Distribution Fund for distribution to the beneficiaries who are CIRI shareholders.
For 2020, the CST Trustees have approved payment dates of March 31, June 30, Sept. 30 and Dec. 9. Distribution amounts are calculated shortly after CIRI’s annual audited financial statements for the prior year are approved. For 2020, we anticipate the amounts will be available shortly before the date of record for the first quarter distribution, which falls on March 23.
The CST trustees have also approved the 2020 CST Elders distribution schedule, with payments scheduled for March 13, June 12, Sept. 11 and Dec. 11. Original shareholders who are 65 years of age or older, and who own at least one share of CIRI stock as of these dates, are eligible to receive quarterly distributions of $450 per eligible Elder and need to do nothing but keep a current mailing address on file.
Resource Revenue Distribution
The yearly amount of CIRI’s resource revenue distribution is also calculated shortly after the prior-year annual audited financial statements are approved, with the actual distribution made shortly thereafter. As required by ANCSA, resource revenue payments associated with at-large shares are paid directly to the shareholder, while resource revenue payments associated with village-class shares are paid to the underlying village corporation.
CIRI urges shareholders who receive their distributions in check form to consider either implementing direct deposit or taking advantage of remote deposit. Both options are fast, easy and eliminate the need to drive to the bank and stand in line. (Note: When remotely depositing a check, it’s a good idea to make a note on the check so you don’t attempt to cash it again. If a check is cashed twice, you are legally liable to repay the amount of the overpayment.)
Shareholders who participate in direct deposit and have a current CIRI mailing address are also eligible to participate in quarterly prize drawings.
Direct deposit forms are available from Shareholder Relations and at ciri.com. To cancel direct deposit, please submit a signed, written request prior to 3 p.m. on the specified deadline. If you have a Qenek portal account, you can cancel your existing direct deposit instruction online via the portal.
Checks are mailed to the address CIRI has on record as of the specified deadline. If your address has changed, be sure to update your address with both CIRI and the U.S. Postal Service. These addresses must match or your CIRI mail may not reach you. When CIRI mail is undeliverable, distributions are held and the shareholder does not qualify to participate in any prize drawings until the address is updated. This is true even if a shareholder is signed up for direct deposit.
CIRI address changes may be submitted online via the Qenek portal. Alternatively, you may submit a completed CIRI address change form – available at ciri.com – or a signed, written request that includes a current telephone number. Address change forms and requests can be scanned and emailed to [email protected], mailed to CIRI at PO Box 93330, Anchorage, AK 99509, or faxed to (907) 263-5186. If faxed, please call Shareholder Relations as soon as possible to confirm receipt. Forms and information on changing your address or submitting a mail-forwarding request with the U.S. Postal Service are available at usps.com or your local post office.
Please be aware that if you fail to notify CIRI of a new address before a specified deadline and your check is sent to your old address, CIRI cannot reissue that check to you unless it is either returned to us, or a minimum of 90 days has elapsed. A list of shareholders who do not have a current mailing address on record is continually updated and may be found on the CIRI website.
Under present law, distributions by the CIRI Settlement Trust are anticipated to be tax-free to beneficiaries in most cases; however, by law, CIRI must continue to make 7(j) payments to at-large shareholders and village corporations directly, and at-large shareholders will continue to receive an IRS Form 1099, which reports that income to the IRS.
As a reminder, neither CIRI nor the CST withhold taxes from distributions; however, shareholders or beneficiaries who anticipate owing tax on their distributions have the option of making quarterly estimated tax payments directly to the IRS. To find out more about applicable federal and state tax requirements or making quarterly estimated tax payments, please consult with a tax advisor or contact the IRS directly.
As in the past, once available, distribution amounts will be announced on the distribution hotline, which may be reached at (907) 263-5100 or toll-free at (800) 764-2435 (CHEK), and the website distribution schedule will be updated.