RTE has set up a scheme for senior managers with pension pots of more than €2m to help them avoid paying a government pension tax.

Board minutes from the broadcaster, obtained under the Freedom of Information Act, reveal that its remuneration committee recommended that it provide “senior managers” with the option of getting an “allowance” rather than a pension contribution if they were “in danger” of hitting the €2m cap on individual funds.

Since 2014, the government’s €2m cap has meant that any amounts over that level are subject to an additional 40% rate of tax. Combined with normal tax on the income, it could leave those with large pension pots paying an effective tax rate of 71% on any pension savings over the €2m