Home Business The Barbados Optional Savings Scheme (BOSS) Explained

The Barbados Optional Savings Scheme (BOSS) Explained

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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.

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