What is the Teachers Fund and what are its objectives ?

What are the objectives of the FUND?

Who qualifies as a member of the Fund?

How much does each member contribute?

How is the fund managed?

What are contributions used for?

What benefits are the members of he Fund entitled to?

What is the Personal Loan?

What is the Investment capital loan?

What is the habitat loan?

What is the vehicle loan?

How can a member access a loan from the Fund?

How can a member know the value of his contributions in the Fund?

What steps should a member take if he does not receive his annual statement?

Can a member opt out of Fund and retrieve his contributions to the Fund upon exit?

Can a member change his or her next of kin?

What steps are being taken to decentralize the Fund?

What is the Teachers Fund and what are its objectives ?
The Teachers’ Fund was set up in 1998 as a retirement for members of the Ghana national Association of Teachers (GNAT). It is being run as a collective investment scheme. The Fund is currently worth over GHC 30 million represented by investments in securities such as treasury bills , bonds, listed equities, private placements, loans and facilities to members, real estate projects and other investments.

What are the objectives of the FUND?
The objectives of the Fund are
1. To provide retirement supplement 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

Who qualifies as a member of the Fund?
Membership is open to any Teacher who is a member of GNAT. However, one needs to register to become a member.

How much does each member contribute?
The basic contribution is currently GHC 5. However, members are allowed to contribute in excess of the basic amount and in multiples of same. Members who contribute above the optional amount are classified as optional contributors.

How is the fund managed?
The Fund is managed by a fifteen member Board of Trustees who report to the GNAT National Council. The Fund has engaged Fund Managers (New World Investment Limited) and Legal Advisors (Sam Okudzeto & Associates) who currently assist the Board of Trustees in managing 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.

What are contributions used for?
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, Office Accommodation etc)

What benefits are the members of he Fund entitled to?
Members of the Fund are entitled to
• Retirement benefit
• Death/ permanent disability group insurance benefit
• Loan facilities (Personal Loan, Investment Capital Loan ,Habitat Loan and Vehicle Loan)
• Credit Purchases of Household Consumer items from Credit Mal Limited, a subsidiary of the Fund

What is the Personal Loan?
The Personal Loan is a 12 – 36 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 access a maximum of GHC 2,500 under this facility. ((Details are provided in the personal Loan handout)

What is the Investment capital loan?
The Investment Capital Loan is a 3-5 year facility is 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 small scale gari processing facility.
A maximum amount of GHC 4,000 may be accessed under the facility. (Details are provided in the Investment Capital Loan handout)

What is the habitat loan?
The Habitat Loan is designed to support members undertake housing projects. A maximum amount of GHC 5,000 may be accessed under the facility payable over a maximum period of 5 years. (Details are provided in the Habitat Loan handout)

What is the vehicle loan?
The Teacher’s Fund in collaboration with the Ghana National Association of Teachers (GNAT) has introduced the Teachers’ Vehicle Loan Scheme.
Under the scheme, GNAT arranges for the supply of brand new and imported used vehicles for sale to members. Payments for these vehicles are financed by the Teachers’ Fund through the Vehicle loan facility.

How can a member access a loan from the Fund?
The member (loan applicant) may contact the GNAT District Secretary in his/her district for assistance with the loan application process.

How can a member know the value of his contributions in the Fund?
The Fund provides Annual Statements of Accounts for each registered member. A Statement of Accounts 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.

What steps should a member take if he does not receive his annual statement?
The member may write to the secretariat describing his situation, stating his/her Fund ID and provide other relevant membership details. Alternatively, the person may fill the non receipt of statement form and forward same to the Fund Secretariat for processing.

Can a member opt out of Fund and retrieve his contributions to the Fund upon exit?
Yes. The Fund has three types of exit as follows:
Death – the applicant is required to provide a death certificate
Retirement - the applicant is required to provide retirement documents
Voluntary - the applicant is required to fill the exit form and attach his/her pay slip

Can a member change his or her next of kin?
Yes. The member needs to write to the Fund and provide details on the new next 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.

What steps are being taken to decentralize the Fund?
In response to requests from contributors to decentralize the Funds operations, the Fund intends to establish eight zonal offices across the country from 2007 to 2010. In 2007, the Northern and Western zonal Offices were established. The Northern Zonal Office would cater for the Funds activities in the Northern, Upper West and Upper East regions while the Western Zonal Office serves the Central and Western regions.