THE Barbados Optional Savings Scheme Bill is one step closer to being
enacted in law, as it made its way to the Senate yesterday for
discussion.
Leading off the debate in the Chamber yesterday morning, Leader of the
Senate, Senator Dr. Jerome Walcott, made it clear that the Barbados
Optional Savings Scheme (BOSS) initiative is not a salary cut as has
been suggested by some, but is intended to help get economic activity
going again in the country.
“It is proposed to allow Government, to in 18 months – the duration
prepared – to be able to have access to approximately $150 million to
help in terms of projects by redirecting these funds that will be
saved to that process. It will be protecting public sector employment,
because Government could have easily laid off persons and achieved the
same purpose,” the Senator indicated.
He added, “[But] it [Government] wants to maintain the spending power
of the public sector still, so that they would still be stimulating
growth within the economy. It is saying that not all of them will be
included, it is saying that those who work for less than $3 000 a
month, earning less than $36,000 annually, they are not going to be
included.”
According to Senator Walcott, the public officers are expected to
receive the overwhelming majority of their salary in cash and the
remainder in a bond, should they choose to accept the bond. In terms
of the bonds, the Leader of the Senate said that those working between
$36,001 and $50,000, the percentage to be received in bonds would be
seven per cent; those between $50,001 and $100,000 would be 12 per
cent; and over $100,000 it would be 17 per cent.
He went on to say that under the BOSS initiative, employees in the
public service are not forced to get involved, but can opt in or opt
out as they choose.
“If you opted in and said you want your entire salary in cash, there
is provision for you to get that. However, for Government’s purposes,
if you are working for $36,001 in a year, for Government’s purposes
seven per cent of that would be sold in bond, but you would get your
total cash you wanted,” he stated.
He maintained that the BOSS programme is flexible, as he noted that
the four-year bond, at a rate of five per cent, will not incur
withholding tax on the interest paid over the period. Walcott made the
point while giving the assurance that the bonds are protected from any
restructuring process. (JRT)