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Gnat Provident Fund (TIER 3) entitlement 

Gnat Provident Fund (TIER 3) entitlement

The GNAT Provident Fund Scheme (Tier 3 Pension) is a voluntary privately managed pension scheme opened to all members. Gnat provident fund is a savings towards future attainments.

Members have the freedom to contribute up to 16.5% of their monthly basic salary to the scheme.

you can contribute a minimum of 6.5% and a maximum of 16.5%. This emphatically means, one can not contribute above 16.5% of your salary.

You are free to choose the percentage of your basic salary that suit your personal interest without any fear or favour. The scheme has the mandate to serve any tom dick and hurry  who wants their services.

The decision to establish the GNAT Provident Fund Scheme was reached at the 5th Quadrennial (52nd) National Delegates Conference of GNAT held at the University of Cape Coast in January 2018.

The major ideologies

1. Assessment of contribution

Members can access their contribution after ten (10) years and use it for any project they want. You can equally make partial withdrawal or complete withdrawal anytime.

However, since there’s tax exemption on the contribution to the Scheme, the National Pensions Act 766 states that members who want to withdraw their money before 10 years will pay 15% tax (Tax Claw back) on both their contribution and returns.

2. Deductions made before taxation.

Deductions are made every month.

Meaning you get a tax gift of 17.5%, which is the tax bracket from which the deduction is made, from the government every month.

In other words, any permissible contribution made to the scheme is ‘tax free’ and that, deductions will be made before the application of income tax on the remaining salary.

The implication here is that, members income tax contribution will reduce and that amount is saved towards the future.

3. Maximum returns on the scheme

There is a great returns on this scheme because of the secure and medium to long term investments options. Members who are currently contributing to the Scheme can attest to this claim in relation to the monthly updates they receive from the Scheme.

Together we stand, divided we fall.

Gnat Provident Fund (TIER 3) entitlement

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