§ 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.