The Barbados Optional Savings Scheme (BOSS) Explained

This is an introduction to the Barbados Optional Savings Scheme (BOSS) which will introduce a public sector salary bond. Bond investments are nothing new. Governments and corporations usually issue bonds as a way of borrowing money for investments. Typically bonds are instruments that offer a fixed rate of interest over a fixed period and provide a relatively safe investment for the purchaser.

Here is some information on the Barbados Optional Savings Scheme (BOSS):

• Employees will be paid the majority of their salary and a small percentage will go towards bonds.
• The program is completely voluntary so public workers can choose whether or not to participate. Therefore each employee will have a minimum of 0% up to a limit to be determined to go towards bonds.
• The percentage of funds going to bonds is calculated on net income.
• Bonds are issued monthly over an 18 month period.
• Each bond matures 4yrs after the date of the issue.
• The interest is 5%/annum and paid every 6 months.
• Interest payments are not subject to withholding tax.
• Investors can sell their bonds thus creating a secondary market.
• Bonds will have an early redemption feature (after 24 months of the date of issue) which would allow investors to redeem their bond early through the Central Bank.
• Persons earning less than $36,000 a year will receive all their salary in cash.

You can visit gisbarbados.gov.bb for further information or leave a comment below if you have any questions.