(1) Section 128 of the Principal Act is amended by substituting the following subsections for subsection (2):

"(2) A pension shall not be payable in respect of any period preceding the date on which all self-employment contributions, referred to in subsection (1) (b), payable by the person concerned have been paid.

(3) Where the person has paid all contributions due under subsection (1) (b) other than contributions payable in respect of the last complete contribution year before the relevant time, subsection (2) shall not apply in respect of such person.

(4) Subsection (2) shall not apply to a claim for pension made on or before 31 December 2009.".

(2) This section comes into operation on 1 January 2010.