GNAT TIER-3 PENSION CONTRIBUTION

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*TIER-3 PENSION CONTRIBUTION (GNAT PROVIDENT FUND) SAVIOUR TO YOUR RETIREMENT*

Planning for retirement is a core future for every person once they begin adulthood. Young people are even being encouraged in recent times to start planning for their pensions early as some wait till a later age to do so.

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GNAT TIER 3

Making retirement includes various forms of savings and investments. One of the retirement plans to be focused on is Tier 3 contribution (GNAT Provident Fund).

This is a voluntary fully funded and privately manage Provident Fund and personal pension plan instituted by the Pensions Act in Ghana ( *ACT 766).*

A lot of attention may not be paid to it because it is a voluntary contribution, but it is a very important one that can help to secure your future in the long term not only after you retire.

A keynote is that Tier- 3 contributions ( *GNAT Provident Fund* ) are very useful for GNAT members.

The Scheme is managed by Trustees licenced by the National Pensions Regulatory Authority (NPRA).

Under the scheme, both the employer and an employee can contribute, however, it is not mandatory that the employer should contribute if they do not want to.

Benefit

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One of the benefits of contributing to the Tier-3 Scheme is the tax relief that you will get on your salary or income. Even though there is no limit to the amount you can contribute there is limit to how much tax relief you can claim.

The government allows up to ( *16.5%* ) of the employee’s monthly basic salary as tax relief and is treated as a deductible expense.

Withdrawal

After 10 years of contributing to the Scheme one can make withdrawals without paying any taxes. Also, if the withdrawal is to pay for taking a mortgage for a primary residence there will be no taxation.

However, if the withdrawal is done before the tenth year, for any purpose other than getting a mortgage it is subject to tax at a rate of *15%* .

If no withdrawal is done till retirement the contributor gets a tax-free lump sum.

Kindly request for your GNAT Provident Fund enrollment form from your nearest GNAT Secretariat and be part of this great Scheme.

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