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

a. If the
  comptroller, in his or her discretion, decides to permit amortization of
  employer contributions pursuant to this section, then, on the  basis  of
  the annual actuarial valuation made as of April first, two thousand four
  as  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-fist, two thousand six. The amount by which the
  contribution  amount  with  respect  to  the  fiscal  year  ending March
  thirty-first, two thousand six exceeds nine and one-half percent of  the
  estimated  pensionable  salary  base  for  the  fiscal year ending March
  thirty-first, two  thousand  six  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 the fiscal year ending March
  thirty-first, two thousand seven, provided, however, that on  or  before
  September  first,  two  thousand  five,  the  comptroller, in his or her
  discretion, may establish a fixed rate  of  interest  per  annum  to  be
  applied  to  the unpaid balance of 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  six, pay a lesser amount during the
  fiscal year ending March thirty-first, two thousand six which  shall  be
  determined  by  the  comptroller  by  adding  the  following two amounts
  together:
    (1) the entire bill for the fiscal year ending on 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 subdivision a of this section,
  and
    (2)  the  first  annual  installment  of  the  "amount  eligible   for
  amortization"  determined pursuant to subdivision a of section sixteen-c
  of this article, if applicable.
    c. 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 seven an amount determined by the comptroller
  by adding the following three amounts together:
    (1)  the  state's  entire  bill  for  the  fiscal  year  ending  March
  thirty-first,   two  thousand  seven,  calculated  pursuant  to  section
  twenty-three-a of this article (without reference to this section),
    (2)  the  first  annual  installment  of  the  "amount  eligible   for
  amortization" determined pursuant to subdivision a of this section, and
    (3)  the  second  annual  installment  of  the  "amount  eligible  for
  amortization" determined pursuant to subdivision a of section  sixteen-c
  of this title, if applicable.
    d.  The  remaining  amortized  payments determined pursuant to section
  sixteen-c of this title and pursuant to this section shall  be  due  and
  payable  each  subsequent fiscal year during the applicable amortization
  period.  The  comptroller  shall  have  the  authority  to  permit   the
  pre-payment  of  the  remaining  balance  of  the  "amount  eligible for
  amortization," determined pursuant to both such sections subject to  the
  following:

    (1)  on  or  before  August  first,  two thousand five, in addition to
  advising with respect to the amount due for the current year billing and
  for the payment of the amortized annual installments determined pursuant
  to section sixteen-c of this title and pursuant  to  this  section,  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 six.
    (2)  on or before each subsequent August first during the amortization
  periods, in addition to the amount due for the current year billing  and
  for  the  payment  of the annual amortized installments, 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.