STATE CONTRIBUTIONS.

(a) The state shall contribute the amount necessary to make the pension system actuarially sound each year, except that for each fiscal year in which the legacy liability has not been fully paid, the state shall make an actuarially determined payment in the amount necessary to amortize the pension system's legacy liability by not later than the fiscal year ending August 31, 2055.

(b) The pension system's actuary shall biennially determine an actuarially determined contribution amount required under Subsection (a) that is consistent with actuarial standards of practice and the following principles:

(1) closed layered amortization of liability layers to ensure that the amortization period for each liability layer begins 12 months after the date the liability layer is first recognized;

(2) each liability layer is assigned an amortization period;

(3) each liability loss layer is amortized over a period of 15 years or until September 1, 2055, whichever is later; and

(4) each liability gain layer is amortized over:

(A) if there is a liability loss layer, a period equal to the remaining amortization period of the largest remaining liability loss layer, and the two layers must be treated as one layer such that if the payoff year of the liability loss layer is accelerated or extended, the payoff year of the liability gain layer is also accelerated or extended; or

(B) if there is no liability loss layer, a period of 15 years beginning the first day of the fiscal year beginning 12 months after the liability gain layer is first recognized or until September 1, 2055, whichever is later.

(c) Before each regular legislative session, the pension system shall provide the Legislative Budget Board with the amount necessary to make the actuarially determined payment required under this section. The director of the Legislative Budget Board, under the direction of the Legislative Budget Board, shall include that payment in the general appropriations bill prepared for introduction at each regular legislative session under Section 322.008. This subsection expires September 1, 2057.