In any action in tort involving the State, any political subdivision of the State, or any governmental agency as a tortfeasor where a final judgment is obtained of more than $1,000,000, the State, political subdivision, or governmental agency has the option of paying that portion of the award in excess of $1,000,000 by periodic payments for a period not to exceed five years. The periodic payments shall include interest on the unpaid balance at the rate specified in § 478-3. A proposed periodic payment plan shall be submitted by the State, political subdivision, or governmental agency to the court in a post judgment hearing for final approval. The court shall approve or order modification of the plan based upon the facts and circumstances of the case and the needs of the parties.