Our Shareholders

The Beringia Settlement Trust

OPPORTUNITIES & BENEFITSBeringia Settlement Trust

At the 2018 Annual Meeting, shareholders approved a resolution to create the BSNC Beringia Settlement Trust. The Trust, which received overwhelming support, is legally distinct from the Corporation and was established to provide benefits to BSNC shareholders and descendants.

Alaska Native corporations (ANCs) like BSNC have been authorized to create settlement trusts since the 1980s, and several regional corporations created these trusts under the prior law. However, due to positive changes in tax law in 2017, ANCs are permitted to make contributions to their trusts using pre-tax dollars. These tax benefits, along with others, allow ANCs to grow program funding to further promote the health, education, and welfare of its beneficiaries, and preserve the heritage and culture of Alaska Native people.

At BSNC, benefits such as shareholder dividends, Elder dividends, scholarships, bereavement assistance, and other benefits, are now paid through the Trust rather than directly from the Corporation.

Once BSNC contributes cash or other assets to the Trust, the assets can only be used for the generation and distribution of benefits to our shareholders and descendants (the “Trust Beneficiaries”). The Corporation cannot take any money out of the Trust for its own use once contributions are made. Funds or assets in the trust are invested and managed to provide benefits to the Trust Beneficiaries.

Beringia Settlement Trust FAQs

Who are the beneficiaries of the Trust?

The Trust beneficiaries are the shareholders and descendants of BSNC.

Can BSNC or someone else use funds from the trust for business investments or operations? How is the Trust protected?

No. Once funds or assets are contributed to the Trust, they may only be used for the generation and distribution of benefits to the Trust Beneficiaries. The Trust may not engage in active business operations. Funds or assets in the Trust must be invested and managed only for the purpose of providing benefits to the Trust beneficiaries.

Does the Trust pay dividends?

Yes, Trust dividends are currently paid to BSNC shareholders. BSNC transfers funds to the Trust which then makes the distributions to the shareholders. However, BSNC does not currently pay Trust dividends to BSNC descendants.

What other benefits can the Trust provide?

The Trust can provide a broad range of benefits including, but not limited to, Elder distributions, scholarships, training, and support for cultural preservation.

If I receive distributions from the Trust, will I have to pay taxes on them?

Distributions from the Trust can be made on a tax-free basis, and BSNC intends to ensure that the Trust is operated so that distributions to the recipients will be tax-free.

Where does the money to put into the Trust come from and who decides how much will be placed into the Trust?

Funding of the Trust primarily comes from BSNC. From time to time, the BSNC Board of Directors will decide how much money and what other BSNC assets should be contributed to the Trust.

How much financial information about the Trust will be communicated to Trust Beneficiaries?

Beneficiaries of the Settlement Trust, including shareholders, have a right to receive information about the Trust to the extent necessary to participate in a benefit program, as may be required by law, or as the Board of Trustees may determine. The financial statements of the Trust will be audited each year, and an annual report will be prepared. The Board of Trustees will determine what information to communicate to shareholders and will coordinate with BSNC to include such information in shareholder newsletters and other shareholder communications.

Do shareholders vote on who is appointed to the Board of Trustees?

Under the Alaska Native Claims Settlement Act, the BSNC Board must appoint the Trustees.

Who decides what additional benefits are provided? Do shareholders get to vote on a new benefit?

The Board of Trustees, in conjunction with the BSNC Board of Directors, will decide whether additional benefit programs will be administered by the Trust. It is not a requirement to have shareholders vote on new benefits.

If I wish to gift my shares to my children and grandchildren, or other descendant, will they receive dividends on my shares from the Trust?

Yes, dividends will continue to be paid for as long as funding is available.