60% GNAT Mutual Fund Contributions To Members
Inflation is currently 54.1%. The Government of Ghana Treasury Bill rate is currently 35.8% and interest on the GNAT mutual fund is 16%. The average interest rate on commercial banks’ loans is 25.21%. The government of Ghana bonds is undergoing restructuring and offering close to nothing to investors. The stock market is hallucinating. The question, therefore, is where would the Teachers’ Fund invest the huge savings of members to give them an interest that will be more than inflation. Or the savings will be kept in this defacto investment vehicle to lose its value drastically by the time members go into retirement. This is just one reason members are demanding at least 60% GNAT mutual fund be given to members who are fifty (50) years or more.
Why wait until retirement to release all contributions to members?
Pension retirement funds are not just for spending but can be used to set up a business that can serve as a vehicle to keep pensioners active. Such a business would provide regular income for retirees, while the original pension fund serves as a seed capital for the business. So why wait till retirement to receive such funds to try establishing a business venture which needs to be groomed to be sustainable? Hardly can a retiree start a new business that withstands the early stage shock of businesses. People in active service would have more tenacity to contain a struggling business than a retiree.
Though it could be said that there is an opportunity for members to access huge loans for the purpose of establishing a business, the question is why use a loan while there is interest-free income available. Also, the current inflation regime would have wiped the forced savings into nothing before retirement.
We believe the above reasons are well stated enough to move the hands of GNAT leaders to initiate the process of granting 60% of members contributions to them to aid their retirement preparation efforts.
Progressive ideas and suggestions are mostly not accepted but must be fought for. Other members, especially school reps and local executives are urged to support and pass this resolution at the next local conferences for this purpose
Author: National Coordinator of the Group Demanding Voting Rights For All School Reps and Local Executives to elect national executives. Join them here GNAT NATIONAL
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