Section 16-C. Amortization of a portion of the state's contribution bill for fiscal year ending March thirty-first, two thousand five

a. If the
  comptroller, in his or her discretion, decides to permit amortization of
  employer contributions,  then,  on  or  before  October  fifteenth,  two
  thousand  three  on the basis of the annual actuarial valuation provided
  for  in  this  chapter,  the  comptroller  shall  determine  the  amount
  (exclusive  of  payments  for  group  term  life  insurance,  deficiency
  payments, adjustments relating to prior fiscal  years'  obligations  and
  obligations pertaining to retirement incentives or any other obligations
  that the state is permitted to pay on an amortized basis) required to be
  paid  pursuant  to section twenty-three-a of this article for the fiscal
  year ending March thirty-first, two thousand five. The amount  by  which
  the  contribution  amount  with  respect to the fiscal year ending March
  thirty-first, two thousand five exceeds seven percent of  the  estimated
  pensionable  salary  base for fiscal year ending March thirty-first, two
  thousand five shall be  the  "amount  eligible  for  amortization."  The
  "amount  eligible  for  amortization"  may  be amortized over a ten-year
  period at eight percent interest per annum with the first of  ten  equal
  payments  payable  during  fiscal  year  ending  March thirty-first, two
  thousand six, provided, however, that on or before September first,  two
  thousand  four, the comptroller, in his or her discretion, may establish
  a fixed rate of interest per annum to be applied to the amounts eligible
  for amortization of all employers, which  more  closely  approximates  a
  market  rate  of  return  on  taxable fixed rate securities with similar
  terms issued by comparable issuers.
    b. The state may, in lieu of paying its bill for  fiscal  year  ending
  March thirty-first, two thousand five, pay a lesser amount during fiscal
  year  ending  March  thirty-first,  two thousand five which shall be the
  entire bill for the  fiscal  year  ending  on  March  thirty-first,  two
  thousand  five,  calculated  pursuant  to section twenty-three-a of this
  article (without reference to this section) less  the  "amount  eligible
  for amortization".
    b-1.  If  the state makes the payment provided for in subdivision b of
  this section, the state shall pay during the fiscal  year  ending  March
  thirty-first,  two  thousand six an amount determined by the comptroller
  by adding the following two amounts together:
    (1)  the  state's  entire  bill  for  the  fiscal  year  ending  March
  thirty-first,   two   thousand   six,  calculated  pursuant  to  section
  twenty-three-a of this article (without reference to this section), less
  the "amount eligible for amortization" determined  pursuant  to  section
  sixteen-d of this article, if applicable; and
    (2)   the  first  annual  installment  of  the  "amount  eligible  for
  amortization" determined pursuant to this section.
    c. The remaining amortized payments shall  be  due  and  payable  each
  subsequent  fiscal  year during the amortization period. The comptroller
  shall have the authority to permit  the  pre-payment  of  the  remaining
  balance  of  the  "amount  eligible  for  amortization,"  subject to the
  following:
    (1) on or before August first,  two  thousand  four,  in  addition  to
  advising  with  respect  to the amount due for the current year billing,
  the comptroller shall advise the state of the total amount  due  and  be
  authorized  to accept pre-payment in full of said amount for fiscal year
  ending March thirty-first, two thousand five.
    (2) on or before each subsequent August first during the  amortization
  period,  in  addition to the amount due for the current year billing and
  for the payment of the annual  amortized  installment,  the  comptroller
  shall  advise  the  state  of  the total amount still outstanding and be

  authorized to accept the pre-payment of any balance remaining to be paid
  for that fiscal year.