More than 55,000 recipients of military superannuation pensions received a six per cent increase in their fortnightly pensions on July 1, the Minister Assisting the Minister for Defence, Mr Bruce Scott said.

"The six per cent increase represents the flow-on effect of the Consumer Price Indexation measure at the March quarter," Mr Scott said.

Under the current indexation rules applying to military superannuants pensions are increased on July 1 each year.

Mr Scott said the current external review into ADF remuneration arrangements is examining the issue of indexation of military pensions.

"I want to assure the 55,000 recipients of military superannuation pensions that the external review of ADF remuneration arrangements, led by MAJGEN Barry Nunn, will address the issue of indexation of defence force pensions for those who are serving and those who have served.

"The Nunn review is a comprehensive review, called for by the government, that will bring forward a modern approach to renumerating a modern Australian Defence Force, and will not forget those men and women who earned the right to a military superannuation pension," Mr Scott said.

The Nunn Review is expected to report to the Minister for Defence and the Minister for Finance and Administration by the end of next month for consideration.

"The government takes seriously the issue of remuneration to ADF personnel, both past and present, and a Government response to the Nunn Review is expected prior to the end of 2001," Mr Scott said.