Section 316-C. Amortization of a portion of the state's contribution bills 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 annual 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 three hundred 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  fiscal  year
  ending  March  thirty-first,  two thousand five exceeds seven percent of
  the 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" shall 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   three   hundred
  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  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  three
  hundred  twenty-three-a  of  this  article  (without  reference  to this
  section),  less  the  "amount  eligible  for  amortization"   determined
  pursuant  to  section  three  hundred  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  the  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.