Section 457 deferred compensation plans offered to governmental employees are an investment backwater.

FORBES: Problems Areas for Pensions: 457/403(b); Custodial Services; Minority/Emerging Managers (May 2, 2006 )

Section 457 deferred compensation plans, like 401(k)s, are defined contribution plans where the employee chooses from a menu of investment options predetermined by his employer.

FORBES: How One Florida County Built A Better 457 Retirement Plan For Its Workers

At its root, section 409A provides that some compensation you defer is nevertheless currently taxed.

FORBES: Got Deferred Compensation? Beware Section 409A