§ 16-a. Amortization of amounts outstanding. a. On or before September first, nineteen hundred eighty-six, on the basis of the annual actuarial valuation and appraisal procedure provided for in this article, the comptroller shall determine the annual amounts that, had this section not been enacted, would have been required to be paid into the pension accumulation fund and the New York state public employees group life insurance plan, as appropriate, from the general fund of the state for all obligations of the state to the retirement system not discharged prior to such date, for state fiscal years ending March thirty-first, nineteen hundred eighty-five and March thirty-first, nineteen hundred eighty-six and amounts for the state's contribution for the retirement incentive program that would, had this section not been enacted, be due to be paid into the pension accumulation fund during fiscal years ending March thirty-first, nineteen hundred eighty-seven and March thirty-first, nineteen hundred eighty-eight. Such amounts shall include interest, as defined in section sixteen of this article through the last day of February, nineteen hundred eighty-seven. The sum of such amounts shall be called the "amount to be amortized".

b. The amount to be amortized shall be paid into the pension accumulation fund and the New York state public employees group life insurance plan, as appropriate, according to a schedule of equal annual installments during any years remaining in the amortization period. The "amortization period" shall be seventeen years. The first payment shall be made March first, nineteen hundred eighty-seven.

c. The amount of the annual payment to be made in any subsequent fiscal year shall be the amount that would be required to pay in full, in equal annual installments over the remainder of the amortization period, any unpaid balance of the amount to be amortized and interest on such unpaid balance computed at eight percent per annum.

d. On or before October fifteenth of nineteen hundred eighty-six and each succeeding year during the amortization period, the comptroller shall file with the director of the budget an estimate of the amount of the annual payment required to be made pursuant to this section in the state fiscal year beginning the first day of April next succeeding such October fifteenth.

e. An item of appropriation sufficient to provide for such payment shall be included in the next annual budget bill for the support of government presented to the legislature for passage. The amounts so appropriated shall be paid from the general fund of the state upon warrant of the comptroller on March first of each state fiscal year during the amortization period.