Public-sector employees often face a complex retirement landscape, with some participating in defined benefit pension plans, others in “hybrid” 401(a) plans, and many in supplemental defined contribution (DC) plans like the 457(b), according to the National Association of Government Defined Contribution Administrators (NAGDCA).

Governmental retirement plans “often face complexities in local law enabling requirement, payroll systems and administration that most private sector employers do not," said NAGDCA president Matt Petersen. That’s why the NAGDCA’s new “Guide to Governmental Defined Contribution Plans” should provide useful information to public sector employers.

Recommended For You

Here is the breakdown of plans that NAGDCA member organizations sponsor, according to the results of a 2022 Public Retirement Research Lab report:

  • 457(b): 62%
  • 401(a): 31%
  • 401(k): 5%
  • 403(b): 2%
Since the recession of 2008–2009, states have made many reforms to the pension plans offered to public sector workers, with many adding DC plans while maintaining defined benefit plans. More than a decade ago, a total of 45 states enacted major pension reforms in this area, according to the report. Most (82%) participants in NAGDCA member plans have access to DB and DC plans, according to NAGDCA.

The new NAGDCA guide, created to bring clarity to the fragmented environment of governmental DC plans, is designed to help trustees, board members, plan sponsors, and administrators understand the characteristics of and interplay between these various public sector DC plans. It contains a breakdown of public sector DC plans; links to NAGDCA resources; a list of FAQs; and a glossary of commonly used terms.

The new guide provides practical information and resources to enable effective engagement with various public sector DC plans.

Related: Public sector employees don’t seem aware of major pension reforms over the last decade


NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans, providing education, information, and training in all aspects of public plan administration to support members in creating plans that enable secure retirement outcomes for their participants. 

“A key NAGDCA focus is providing our members and others involved in the construction and management of public sector DC plan offerings with the tools they need to optimize retirement savings outcomes for state and local government employees,” said Petersen. The new guide “updates and enhances NAGDCA’s ‘Intro to Public Sector DC Plans’ introduced in 2020.”

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lynn Cavanaugh

Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.