Frequently Asked Questions

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FAQs about the Secretariat and the Fund

The Teachers’ Fund was set up in 1998 as a retirement supplement Scheme for members of the Ghana National Association of Teachers (GNAT).

At December 2013 ,the Fund was worth over GHC 235 million represented by investments in treasury bills, bonds, listed equities, private placements, loans and facilities to members, real estate projects and other investment portfolio.

  1. To provide retirement supplement benefits to members
  2. To provide lifestyle enhancing facilities to members in the form of loans
  3. To facilitate access to credit purchases from CML
  4. To engage in property development and real estate activities

The Fund is managed by a fifteen member Board of Trustees who report to the GNAT National Council. The Fund has engaged Fund Managers (Ecobank Development Corporation) and Legal Advisors (Sam Okudzeto & Associates) who currently assist the Board of Trustees in managing the resources of the Fund.The Board has also set up the Fund Secretariat, headed by the Fund Administrator, to implement its policies and decisions. The Fund Secretariat works through the District Finance Committees (DFCs) to serve its members in the districts.

The Fund presents an annual report on its activities to the National Council Meeting of GNAT which is held annually. The National Council is made up of representatives from each level of the GNAT structure i. e representatives of GNAT members from the national through to the district levels.

At the National Council, approvals concerning major decisions affecting the Fund and its members are sought.

Questions and Answers on membership to the Fund

Membership is open to any Teacher who is a member of GNAT.  However, teachers interested in the scheme are required to register to become members.

Yes. This is usually referred to as voluntary exit. This may occur when a contributor loses interest in his membership or decides to join another teacher association.

Yes. The member needs to write to the Fund and provide details of the new next of kin.  Alternatively, a member may provide details of the new next of kin on the detachable counterfoil on his/her statement of accounts and forward same to the Fund Secretariat.

Membership is open to any Teacher who is a member of GNAT. However, one needs to register to become a member.

Answers to teething questions on the contributions and benefits there of of the Fund

The basic contribution is currently GH¢30.00. However, members are allowed to contribute in excess of the basic amount and in multiples of same. Members who contribute above the basic amount are classified as optional contributors.

The total amount realized from membership contributions are invested in

  • Listed equities
  • Treasury bills
  • Bonds
  • Loans and facilities
  • Credit Mall
  • TF Financial Services
  • Private equity placements   
  • Properties (Hostels, Offices, Accommodation etc.)

Members of the Fund are entitled to

  • Retirement benefit
  • Death/permanent disability benefit (group solidarity scheme) 
  • Loan facilities (Personal Loan, Investment Capital Loan, Habitat Loan and Vehicle  Loan)
  • Credit purchases of assorted items from Credit Mall Limited, a subsidiary of the Fund

The Fund provides each registered member an Annual Statement of Accounts yearly. The statement captures details of a member’s yearly contributions, the investment portfolio of the Fund and the current value of the Fund’s investments.The statement also shows the current value of a member’s investment among others.

The Board of Trustees of the Fund presents the proposed increment in basic contributions to the GNAT National Council for consideration. The Council subsequently informs the regional and district secretaries to sensitize contributors about the proposed increment. The Fund also conducts a nationwide survey to ascertain the opinion of contributors on the proposal. The responses from contributors in each region are collated and presented to GNAT National Council for consideration. The Fund implements the final decision of the National Council. 

The member may complete the non-receipt of statement form and forward same to the Fund Secretariat for processing.

Alternatively the member may write to the secretariat describing his situation, stating his/her Fund ID and provide other relevant membership details.

Answers to loans, rates, interests, charges, and financial facilities offered to teachers by the Fund

The Personal Loan is a 12 – 48 month facility made available to registered members to enable them resolve their short term financial obligations including payments for rent advance, school fees and funeral expenses.Members may currently access a maximum of GH¢12,000 under this facility. (Details are provided in the Personal Loan Brochure)

The Investment Capital Loan is a 3-5 year facility intended to support members to undertake investment projects with the view to generating additional income. The projects may include purchase of land, acquisition of commercial vehicles, setting up shops and establishing a small scale food processing facility. Currently, a maximum amount of GH¢20,000 payable over a maximum period of sixty months can be accessed under the facility. (Details are provided in the Investment Capital Loan Brochure)

The Habitat has been structured to support members of the Fund build houses.The facility currently has a ceiling of GH¢ 25,000 payable over a maximum period of sixty (60) months. (Details are provided in the Habitat Loan Brochure)

The Vehicle Finance Loan is a product developed and introduced jointly by GNAT and the Fund. Under this scheme, the Fund finances the purchase of vehicles on behalf of loan applicants. The facility currently has a ceiling of GH¢40,000. 

Details are provided in the Vehicle Loan Brochure

A member who is interested in a loan from the Fund may contact the GNAT District Secretary in his/her district for assistance with the loan application process. Nevertheless the application process for any of the four loan packages may involve the following:   

  1. Member visits a District GNAT Secretariat to apply for the facility.
  2. The District GNAT Secretary conducts preliminary assessment to ascertain whether the member is eligible for the loan or not. The assessment would involve
    • verifying regular payment of GNAT dues and Teachers Fund contributions
    • verifying the applicant’s Teachers Fund ID
    • verifying the applicant’s Teachers registration number
    • confirming the applicant’s school
    • using data on the applicant’s payslip to ascertain whether he/she can afford the monthly installments
  3. Where the assessment proves that the member qualifies for the loan, GNAT Secretary issues a loan application form to him/her for completion.
  4. The applicant is expected to return a completed loan application form together with other documents required.
  5. Loan application form is recommended and endorsed by designated DFC member(s) and District Director of Education or his authorized representative.
  6. The completed forms and relevant documents are then forwarded to the Fund Secretariat for processing.

The principal objective of the Fund is to provide a meaningful retirement supplement to members. In order to achieve this, there is the need to ensure that the contributions are properly invested to achieve significant returns.

Loans granted to contributors are considered as one key investment and are expected to generate impressive returns. Interest charges are recognized as returns on the loan portfolio. These are distributed among members of the Fund including loan beneficiaries.

It is noteworthy that a greater number of contributors hardly apply for loans. This implies that majority of members contribute towards their retirement and they expect meaningful returns on their investments.  

Currently, the Fund charges an interest rate of 2% monthly or 24% per annum on loans using the reducing balance method. This implies that interest is charged on the remaining principal. The interest rate includes an insurance charge and a processing.

Unlike, other financial institutions that require loan beneficiaries to pay insurance, processing, commitment and other charges at the time of disbursement, the Fund adds its insurance and processing charges to the principal amount and allows the loan beneficiary to pay the total amount involved over the entire repayment period.

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