N.Y. Retirement & Social Security Law § 16-d: Amortization of a portion of the state's contribution bill for fiscal year ending March thirty-first, two thousand six

§ 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.