The Ghana National Association of Teachers (GNAT), in its quest to enhance the living conditions of its members came up with the idea of setting up a monthly “put-aside” Fund to support its members.

The National Council of GNAT, at its meeting held in Kumasi in 1998 responded positively to a proposal put forward by the Chief Executive of New World Investments Limited (Fund Managers). In May 1998, GNAT started a monthly deduction of GH¢0.10(¢1,000.00) as basic contributions from the salary of members through a check-off system. This was the genesis of the Teachers Fund.

The basic contribution was increased to GH¢ 0.50 (¢.5,000.00) in February 2002 and GH¢2.50 (¢25,000.00) in October 2004. In February 2008, the basic contribution was further increased to GH¢5.00 (¢50,000.00). However, members have the option to make higher contributions in multiples of the basic amount.

TRUST DEED

In February 1999, a Trust Deed was signed between GNAT and the Board of Trustees of the Teachers Fund. In this document GNAT entrusted the safe-keeping and sound management of the Fund into the care of the Board of Trustees. The Trust Deed and the Rules and Regulations articulate the broad framework within which the Board is expected to oversee the management of the affairs of the Fund.

THE BOARD OF TRUSTEES

The Fund is governed by a fifteen - member Board of Trustees including ten teachers representing the ten regions of the country. These individuals are selected by members of GNAT at the regional level to represent them on the Board.

The Chairman of the Board of Trustees is selected by the National Council of GNAT. Currently, Mr. Samuel Ofori Adjei, the Headmaster of Accra Academy, is the Chairman of the Board. In addition, the National Council of GNAT is represented on the Board of Trustees by two of its Executive Officers.

GNAT also appoints three external members to the Board of Trustees by virtue of their expertise in matters relating to the Management of the Fund.

THE TEACHERS FUND SECRETARIAT

The Fund Secretariat has been set up to implement the Board's policies. The Fund Secretariat is headed by a Fund Administrator who is appointed by the Board of Trustees.

The Fund Administrator reports directly, at regular intervals, to the Board of Trustees and is supported by a team of professional staff who serve as mediators between the Board of Trustees and members of the Fund. The Fund Secretariat is located at the Teachers Hall Complex, Accra.

In each District, the Fund serves its members through a four member District Finance Committee (DFC) currently made up of The District GNAT Secretary, a Treasurer, a Chairman and a Member.

OBJECTIVES OF THE FUND

I. The monthly contributions are savings for the members. These are invested to generate returns. Upon retirement, a member receives a package made up of the total amount he has contributed over the years and the amount he has
accumulated as returns on his savings.

II. – The Fund offers four categories of loan to its members with the view to enhancing their lifestyles and ensuring that they live comfortably. These are Personal Loan, Investment Capital Loan, Habitat Loan and Vehicle Loan.

III. The Fund has set up a subsidiary which sells household consumer items tocontributors on credit.

IV. The FUND seeks to address the accommodation needs of members by providing housing and accommodation facilities to interested members. It is also involved in the construction and rental of hostel facilities and office
accommodation. It is noteworthy that every initiative or activity carried out by the FUND is expected to fulfill its primary objective (i.e. objective 1) which involves providing contributors with a retirement supplement package. In line with this, the loans and facilities offered to contributors, the operations of Credit Mall Limited and the Real Estate venture are expected to generate profits which are distributed to members as returns or dividends.