THE Federal Opposition has rejected a new government proposal to review pensions every three years to find the balance between budget cuts and payment rises.
Social Services Minister Scott Morrison revealed the potential plan at the weekend, which could include a three-yearly independent review.
The government has so far failed to pass its plans to link pension rises to inflation rather than wages, a move that would reduce real pension increases over time.
But Mr Morrison suggested the review would act as a safety net for pensions, but any actual findings would be up to the government to pursue.
Labor's families spokeswoman Jenny Macklin said it was "not a compromise - it's a mean trick", and could risk creating "an underclass of pensioners".
She said while Labor did not oppose a review, it "must not come at the cost of a proper indexation method".
A new "families package" is expected to be included in the May budget.