University faculty and staff who retired before July, 1973, will receive pension increases of up to 25 per cent. Joan Bruce, manager of benefits administration, said yesterday. The Corporation approved the benefits increase at a meeting last month.

Daniel Steiner '54, general counsel to the University, said yesterday that he had recommended the increase because of the effects of inflation on retired employees' incomes. He added that the increase, which will take effect on Jan. 1, 1982, will cost the University an additional $370,000 per year. The last pension increase came in 1979.

The amount of the increase will be determined for each retired employee by the pension already received and the length of time since retirement. Under most existing pension programs, retired employees are awarded benefits according to the length of time worked for the University, Bruce said.

She estimated that the change will affect 1400 former faculty, salaried and hourly-paid staff now receiving pensions.

Peeled Eyes

Bruce said the pension increases probably would not allow the incomes of retired employees to completely keep pace with inflation, but added that along with social security increases, the increases would help lower-income persons.

The increase in benefits resulted from the University personnel office's continual monitoring of retired person's incomes and inflation. Bruce said, adding that these efforts will be kept up to see if future pension increases would be necessary.