This section modifies the transitional rate of the state pension for a person if, after the person has reached pensionable age, a determination is made under section 44A(2) of the Pension Schemes (Northern Ireland) Act 1993 (in this Act referred to as “the Pension Schemes Act”) (contracting-out: reinstatement in state scheme following payment of contributions equivalent premium).

The person's transitional rate is to be recalculated (taking the determination into account under paragraph 3(8) of Schedule 1).

The recalculated rate has effect as from the day on which the person reached pensionable age (and the other provisions of this Part apply accordingly).