Rep. Doug Bereuter, R-Neb., has introduced a bill that would let employees in the public sector and at not-for-profit organizations boost their contributions to 457 plans to $9,240, matching those by private sector employees. The disparity has existed since tax law changes in the mid-1980s froze the 457 plan contributions at $7,500.
Mr. Bereuter's bill also would require public sector and not-for-profit organization employee contributions to retirement plans be held in trust, thus preventing employers from being able to tap those retirement dollars for other purposes.
