GNAT approves increase in monthly contribution to teachers

The National Council of the Ghana National Association of Teachers, (GNAT) has given approval for an upward review of the monthly basic contribution from Ghc20 to Ghc30 for registered members of the Teachers Fund of GNAT.

The new minimum contribution takes effect from January, 2015.

The General Manager of the Teachers Fund of GNAT, Forster Buabeng, noted that the increase in minimum contribution is "in the interest of GNAT members who are contributors to the Fund.

This is because the higher the amount contributed each month, the greater the returns on contributor's investments".

Currently, the Fund is averaging 70% return on contributions.

Mr. Buabeng explained that apart from those who make the monthly basic minimum contribution, there are other members who pay more than the minimum - and these members are referred to as optional contributors.

According to Mr. Buabeng, "there are several benefits associated with being an optional contributor to the Fund".

Currently, the Teachers Fund of GNAT is the second- largest pension fund after SSNIT in the country. It was set up in 1998 by GNAT as a retirement supplement scheme for registered GNAT members.

From an initial basic contribution of ten pesewa per member in 1998, today the Fund has grown and is valued in excess of 300 million cedi.

Contributions from members are invested in securities such as money market instruments, listed equities, bonds, private placements. Other investments are loan facilities to members, real estate projects, and investments in subsidiaries.

Contributors over the years have benefitted from loan facilities for accommodation, education, rent, vehicle purchase and investments in their personal businesses.