GNAT urges teachers to take advantage of Third Tier Pension Scheme

The Ghana National Association of Teachers (GNAT) has called on its members to take advantage of the Third Tier Pension Scheme for a better future.

Government in 2008 introduced the voluntary scheme as a more flexible pension system to augment the mandatory National Social Security, and the occupational pension schemes with tax free contributions, private fund managers and regulators.

Mr Kwamena Ahenakwa-Quarshie, Head of Salaries, Compensations and Working Conditions, GNAT, said policy makers have realised the need for some flexibilities in the pension system, thus introduction of a the third tier. He was addressing members of the Volta Regional Charter of the Association in Ho during a workshop on the Scheme.

Mr Ahenakwa-Quarshie said GNAT had in January 2018 passed its adoption, bringing to 18.5 per cent, the total contribution from employer and employee. He appealed to young professionals especially to consider the subsidies and invest in the Scheme to reduce their tax burdens, and also to retire with an enhanced pension.

Mr Isaac Tedeku, Operations Manager, United Pensions Trustees, a fund management firm said employees could contribute a maximum of 16.5 per cent of their basic salaries to the fund.

He said the reforms in the new pension scheme (Act 766) provided efficient tax exemption advantages, and that working professionals must endeavour to save towards tomorrow.

Mr Tedeku said the Third Tier guaranteed convenient insurance policies and that a wide array of reputable fund management institutions were being engaged on the scheme towards building a secured future for contributors.