Section 316-D. Amortization of a portion of the state's contribution bills 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
  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  six.  The amount by which the contribution
  amount with respect  to  fiscal  year  ending  March  thirty-first,  two
  thousand  six  exceeds  nine  and  one-half  percent  of  the  estimated
  pensionable salary base for fiscal year ending March  thirty-first,  two
  thousand  six  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  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 the 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   three   hundred
  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 section three hundred sixteen-c  of
  this title, 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  three
  hundred  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  three
  hundred sixteen-c of this title, if applicable.
    d.  The  remaining  amortized  payments determined pursuant to section
  three hundred 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 section 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 three hundred 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  the
  fiscal year ending March thirty-first, two thousand six.
    (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.