GNAT urges govt. to consider private pension scheme

Accra, (Greater Accra) 25 Feb. '99,

The Ghana National Association of Teachers (GNAT) on Thursday urged the government to expedite action on exploring the feasibility of establishing private pension funds as a supplement to the SSNIT pension scheme as outlined in the 1998 budget Statement. Mr Kwame Amo-Dako, President of GNAT, underscored the need for such private pension schemes, saying incentives must be given to encourage private sector long-term savings mobilisation. Mr Amo-Dako was speaking at a ceremony at which Mr Kwabena Kyere, Deputy Minister of Education, launched the "Teachers' Fund" to serve as an investment and loan scheme for contributors. The fund will, among other things, supplement the retirement benefits of members, provide emergency relief, seed capital for part-time business and serve as a collateral at a fee for bank loans intended for housing projects. Mr Amo-Dako appealed to the government to abolish the one per cent service charge levied by the Accountant-General's Department on its monthly deductions. He said any teacher who has been a member of GNAT for at least one month is eligible to contribute to the fund and asked members to consider an increase in the subscription fee of 1,000 cedis. "We have all realised that the worker, and for that matter the teacher, cannot lead any meaningful and respectable life by depending solely on their pay packet. So, in effect, the teachers' (fund) is a pooled investment scheme developed as a means for teachers to invest in companies, treasury bills, consumer credits and so on". Upon retirement, a contributor's account can be turned into and managed as an individual account. Mr Dako-Mensah inaugurated a 15-member Board of Trustees for the fund. It comprises 10 regional representatives of GNAT, two executives of the association and three individuals. They are Mr Yaw Asiedu-Mensah, Vice President of GNAT, who is chairman of the board, Mrs Irene Adanusa, deputy secretary-general, GNAT, Mr Addo Larbi, Eastern region, Mr K. A. Afful, Western region and Jakali Nungor, Upper West region. The others are Mr Simon Asige, Upper East region, Mr Charles Gyamfi, Brong Ahafo, Mr Nuriden Inkoom, Central region, Mr Andrews Evans Kyere, Ashanti, Mr Alhassan John Nantogmah, Northern region, Mr Robert Kwesi Nyame, Greater Accra and Mr S.W.K.Tsadidey, Volta region. The individuals are Mr Sam Okudzeto, legal expert, Mr Kojo Thompson, Managing Director of Social Security Bank and Mr Frederick France, Bank of Ghana. It will be managed by New World Investments whose Chief Executive is Mr Kwame Pianim.