The government's early retirement scheme will most likely be reintroduced next year despite that fewer than 1,000 public servants are set to leave after the closure of this year's scheme.

Finance minister Brian Lenihan said last week that 818 civil servants in government departments and a further 167 in the wider public service have had their applications for early retirement approved.

Finance officials are understood to be very disappointed with the response to the generous scheme, which will save the exchequer at most €50m or 0.25% of the €20bn public-sector paybill next year.

In a document presented to the unions last week, the government said the scheme, which allows public servants to retire from 50 years of age without any actuarial reduction in their pension, could "possibly" be con­- tinued in 2010 and subsequent years, in a bid to cut numbers.

Thousands were expected to avail of the scheme, but the steep rise in unemployment saw most public servants hold on to their jobs. Given that the public servant must be at least 50 years of age, many would have been promoted by that age to assistant principal or principal officer level which attracts a salary ranging from €70,000 to over €100,000. For example an assistant principal aged 50, on €70,000 and with 30 years' service would see their income slash­ed to €26,500 if they left early, forgoing potential earnings of €650,000 over the remainder of their working life.

With close to 500,000 now signing on the live register, the prospect of replacing some or all of that lost income by securing a job in the private sector is remote.