In an extraordinary move, two parliamentary secretaries and two backbenchers have condemned their Government's rejection of a plan to improve superannuation for retired bureaucrats and defence personnel.

The decision affects about 300,000 people including about 50,000 in the Canberra region and has attracted strong criticism from Mike Kelly, Bob McMullan, Annette Ellis and Senator Kate Lundy.

The MPs who represent Canberra and Queanbeyan have called for immediate action from Finance Minister Lindsay Tanner to restore constituents' confidence in the Government.

The brouhaha centres on the long-awaited results of the Matthews review of pension indexation arrangements for about 300,000 retired public servants and ex-defence personnel.

It recommended the consumer price index should still be used to index pensions for ex-defence personnel and Mr Tanner agreed.

''We are aware that this will disappoint many superannuants and their representatives, but we are satisfied that the CPI is the most suitable index to protect Australian Government superannuation pensions against inflationary price increases available at this time,'' Mr Tanner said.

There was immediate outcry among affected groups who felt betrayed and ''very very angry''.

For more, pick up a copy of today's Canberra Times