(1) Section 115 of the Principal Act is amended -

(a) by substituting the following subsection for subsection (6) (amended by section 4 of the Act of 2006):

"(6) Regulations under subsection (5) shall provide that State pension (transition) payable by virtue of those regulations shall, subject to subsection (6A), be payable at a rate less than that specified in Schedule 2, and the rate specified by the regulations may vary by reference to the yearly average so calculated, but any increase of that pension payable under section 117(2) shall be the same as if the claimant had a yearly average of not less than 48.",

and

(b) by inserting the following subsection after subsection (6):

"(6A) In the case of person who, on 31 December 2012, is entitled to or in receipt of a pension by virtue of regulations under subsection (5) which includes an increase under section 117(1), subsection (6) shall not operate so as to reduce the rate of the increase payable under section 117(1) below the rate that may be prescribed.".

(2) This section comes into operation on 1 January 2013.