§ 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.