Government employer retirement plans

Voya provides retirement plans and employee benefits for public sector employers, including state governments, local governments, special districts and public agencies. We support employers, financial advisors and government employees with dedicated public-sector teams, modern technology and long-tenured expertise.

How government plans can fall short — and what to do about it

In Voya’s latest research,3 we found:

More participants could benefit from advisor guidance.
1 in 5 don't fully understand their pension.
income concerns are limiting participation.

We share a practical action plan for government employers and financial advisors to help employees improve outcomes.

Get Action Plan

Achieve more with the top government plan provider*

Voya helps government employers and financial professionals in the sector drive retirement confidence for employees, which can improve recruitment, retention and engagement rates.

Designed for government — supported by government specialists

  • Specialists focused on 457(b), 401(a) plans, and post-retiree healthcare savings plans
  • Tenured, public sector relationship managers
  • Government-experienced Implementation team 

Guidance and education that helps drive retirement readiness

  • On-site and on-demand financial education tailored specifically for government employees
  • Workforce communications customized to meet employee needs
  • Personalized advice and guidance provided for every individual employee

Technology designed to improve results — not just manage accounts

Ready to improve your retirement plan’s effectiveness?

Schedule a Demo

Email:  dl-salesopportunities-midlargegovtmarkets@voya.com

Call 866-481-3653, Option 4 

Frequently Asked Questions (FAQs)

A governmental 457(b) deferred compensation plan is a retirement savings plan designed for state and local government employees. It allows eligible employees to contribute a portion of their income on a pre-tax, or if allowed under the plan, a Roth (after-tax) basis, with taxes generally deferred until withdrawals are made. These plans are commonly used to supplement pensions and other retirement benefits.

Only state or local government employers are eligible to establish a governmental 457(b) deferred compensation plan. For-profit employers cannot offer 457(b) plans, which makes them a retirement benefit specific to public service employees.

Yes. Governmental 457(b) plans may include designated Roth accounts, allowing employees to make after-tax contributions. Roth contributions are taxed upfront; qualified withdrawals of contributions and earnings may be federally tax-free, if the distribution meets IRS requirements.

The primary tax advantage of a 457(b) plan is tax deferral. Employee contributions and investment earnings are not taxed until they are withdrawn, which can allow retirement savings to grow without immediate tax impact. Roth contributions, if offered, follow different tax rules.

The special 457(b) catch up provision allows eligible employees to contribute more than the standard annual limit during the three years before the year in which they reach their normal retirement age. This provision is designed to help participants accelerate savings and close retirement gaps using additional contributions on a pre-tax or Roth basis, subject to plan rules.

Use Voya’s 457(b) Special Catch-up Calculator here. 

Under the SECURE 2.0 Act, employees who earned FICA wages in excess of $150,000 in the prior year (adjusted for inflation) from the employer sponsoring the plan must make eligible age-based catch-up contributions as Roth (after-tax) contributions, if the plan offers a Roth option.  If a governmental 457(b) plan does not offer Roth contributions, those higher income employees may not be permitted to make age-based catch-up contributions.

If the employee's wages do not exceed the annually adjusted threshold or are not subject to FICA, age-based catch-up contributions can be made on a pre-tax and/or if available, Roth (after-tax) basis.

Yes.  Voya Employee Benefits offers solutions for government employers, including supplemental and voluntary insurance, leave management solutions and health account solutions such as commuter benefits. We also offer innovative digital capabilities that enhance employee education and user experience through all life stages with personalized guidance capabilities.  

To learn more about these solutions, contact us. 

Voya Financial and its affiliated companies (collectively, “Voya”) are making available to you the Personalized Enrollment Guidance tool offered by SAVVI Financial LLC. (“SAVVI”). Voya has a financial ownership interest in SAVVI, including representation on SAVVI’s board of directors, and also maintains business relationships with SAVVI that create an incentive for Voya to promote SAVVI’s products and services and for SAVVI to promote Voya’s products and services. Please access and read SAVVI’s Firm Brochure which is available at this link: https://www.savvifi.com/legal/form-adv. It contains general information about SAVVI’s business, including conflicts of interest.

Products and services offered through the Voya® family of companies.

Health Account Solutions, including Health Savings Accounts, Flexible Spending Accounts, Commuter Benefits, Health Reimbursement Arrangements, and COBRA Administration offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Custodial services provided by Voya Institutional Trust Company.

Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency

Voya Leave Management services provided in part by Disability Reinsurance Management Services, Inc.

Insurance is issued by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (New York, NY). Within the State of New York, only ReliaStar Life Insurance Company of New York is admitted, and its products issued. Both are members of the Voya® family of companies. Voya Employee Benefits is a division of both companies. Form numbers, product availability and specific provisions may vary by state.

* Based off Voya’s analysis of the full survey data provided by ISS Media in connection with the 2025 PLANSPONSOR Recordkeeping Survey. PLANSPONSOR is an ISS Media Brand. Voya ranked #1 in Total Governmental 457(b) Recordkept assets. Survey results are based on self-reported 12/31/2024 data by 38 participating companies. While companies do not pay to participate in the survey, they do pay a fee to receive the full set of data.

1 Voya internal data as of 12/31/25

2 Voya internal data as of 3/31/26

3 Beyond the pension: What really drives retirement confidence for public employees, Insights from the Voya Public Employee Retirement Readiness Survey (September–October 2025), Focusing on nearly 600 U.S. employees (n=198 government and n=400 non-government), ages 35–70 with at least $75,000 in household investable assets and a key role in financial decision-making, the survey aims to uncover factors influencing retirement readiness, barriers to saving, and opportunities for improving employee financial security.

4 81% of employees feel confident knowing what steps to take after engaging with us – Voya survey data as of 9/30/25

5 2-3x higher engagement rate – Voya data as of 6/30/2025. Voya’s personalized email open rate is 76%, compared to financial industry average of 27.42 open rate. https://www.moengage.com/blog/average-email-open-rate/

6 Corporate Insight, Inc. rating: In 2024, Voya Financial earned an “Excellent” rating from Corporate Insight, Inc., in their 2024 Retirement Plan Monitor – Institutional Report. The report evaluates plan recordkeepers’ sponsor website homepages and plan dashboards. The overall design and approach that firm’s use to present plan information and specific details they provide are graded using multiple criteria across three categories: approach, data metrics, and resources. The rating is based on 2023 activity and no fee was paid for consideration. In order to receive an excellent rating, firms must present clear, informative plan summary experiences, offer a comprehensive selection of data and visualizations, provide design elements with a clean layout, and key resources including a participant search tool, alerts and messages as well as abundant quick links. They also include beneficial design elements, like customization options or responsive design. Awards and/or rankings are not representative of actual client experiences or outcomes and are not indicative of any future performance.

This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. Please consult an independent legal or financial advisor for specific advice about your individual situation.

Products and services offered through the Voya® family of companies.

For plan sponsor use only. Not for use with participants.

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