Choosing the right 457 plan provider is one of the most important decisions HR professionals and benefits administrators can make for their public-sector or nonprofit workforce. A well-managed 457(b) plan not only helps employees save effectively for retirement but also reflects the organization’s commitment to financial well-being and long-term security. With 2026 bringing continued innovation in digital tools, lower-cost investment options, and enhanced participant education, selecting a provider that balances flexibility, transparency, and service quality is key. 

This article explores the Top 10 457 Plan Providers in 2026, highlighting their strengths, plan features, and what HR teams should look for when comparing options.

Why this matters: 457(b) deferred-compensation plans remain a key retirement vehicle for state/local government and many nonprofit employees. Because 457 plans are less common than 401(k)s and 403(b)s, assets and participants tend to be concentrated with a smaller set of recordkeepers, which makes your choice of provider especially important for fees, investment lineup, participant tools, and fiduciary support.

Below are the ten providers HR teams see most often in 2026, with quick takeaways on what each does best, how they differ, and what to ask during your RFP or vendor review.

1. Empower Retirement — Large market presence & modern participant experience

Overview: Empower is one of the largest public-plan recordkeepers and is now a go-to for many state and local 457 plans. They combine broad investment menus with strong participant web/mobile tools and integrated plan administration services. Empower is attractive to employers who want a single-vendor solution that handles recordkeeping, participant education, and managed accounts.

Why HR likes them: modern user interface, intuitive plan dashboards, automatic enrollment/deferral features, and scalable implementation experience for large governmental plans.

Watchouts: menu customization and fee benchmarking are important — Empower’s scale is a benefit, but pricing and investment options should be negotiated in the RFP.

2. Voya Financial — Deep public-sector relationships & flexible servicing

Overview: Voya has long been a major provider for governmental deferred-compensation programs and is frequently visible in municipal and state plans. They offer plan administration, advisory services, and participant education programs tailored to public employers. (You’ll see Voya listed in many state plan partner pages, including large systems.) 

Why HR likes them: strong outreach and education, customizable participant communications, and a history of servicing multi-vendor public plans.

Watchouts: investment lineup and fees vary by plan; HR should request specific benchmarking and sample plan documents.

3. Nationwide — Flexible investment menus and communication support

Overview: Nationwide is widely used in the 457 space; they’re known for flexible investment options (including stable value and target-date series) and solid participant communications. Many medium-sized public and nonprofit plans rely on Nationwide for a dependable recordkeeping backbone. 

Why HR likes them: stable value options (important for conservative participants), clear participant tools, and plan sponsor reporting that helps fiduciaries monitor utilization.

Watchouts: evaluate their menu against low-cost index options and review administrative fee structures.

4. Fidelity — Strong investment platform and brokerage flexibility

Overview: Fidelity’s scale and broad investment platform make it a frequent choice where employers want a full brokerage option, robust research tools, and deep investment expertise. Many state plans offer Fidelity as an investment provider option for 457 participants.

Why HR likes them: best-in-class trading and investment research, Roth/after-tax options where applicable, and strong participant education.

Watchouts: Fidelity’s features are powerful but can overwhelm participants; assess whether a self-directed brokerage account adds complexity you don’t need.

5. TIAA — Strong option for education, public education and nonprofit plans

Overview: TIAA remains a top choice for many education and nonprofit employers because of its history serving those sectors and its retirement expertise. They offer annuity options alongside mutual fund lineups, which some participants prefer for lifetime income planning. 

Why HR likes them: tailored outreach for higher-education staff, proven recordkeeping for complex employer groups, and options that appeal to conservative savers.

Watchouts: annuity options have unique features/limitations — review liquidity and transfer rules carefully.

6. MissionSquare Retirement (formerly ICMA-RC / Mission Square) — Built for public employees

Overview: MissionSquare (and legacy ICMA-RC) historically specialized in municipal and state public-sector retirement plans. Their product set is designed around the needs of public employers and employees (pensions, deferred compensation coordination, participant outreach). For many city/county employers, MissionSquare is a familiar, mission-aligned choice. 

Why HR likes them: sector expertise, public-sector plan design knowledge, and participant materials that resonate with municipal employees.

Watchouts: compare their digital and reporting features to newer entrants; ensure their tech stack meets current expectations for mobile access and automated communications.

7. Equitable (formerly AXA Equitable) — Broad product menu and advisor support

Overview: Equitable provides 457 recordkeeping and a broad set of investment and insurance solutions. They can be a strong fit for multi-employer or non-profit plans that want a wide menu plus advisor-led education programs.

Why HR likes them: experienced advisor network, retirement income planning tools, and flexible plan design options.

Watchouts: Equitable’s product breadth is a plus, but fee transparency and fund expense comparisons should be reviewed closely.

8. Corebridge / AIG / Transamerica (branded alternatives) — Insurance-flavored solutions

Overview: A number of regional public plans and school districts still use insurers and legacy insurance companies for 457 plans (Corebridge/AIG and others). These providers often surface where employers value guaranteed or insurance-backed options and localized sales/consulting teams.

Why HR likes them: access to guaranteed-type products and strong local rep support for enrollment drives.

Watchouts: insurance-style products can have higher fees and less transparency than fund-only recordkeepers. Confirm liquidity rules and surrender charges (if any).

9. Principal / Lincoln / CUNA Mutual (larger non-gov market players) — Strong for certain non-government employers

Overview: The non-government (tax-exempt employer) 457 market sometimes leans on large retirement companies like Principal, Lincoln, and CUNA Mutual (now part of larger groups). These firms are important when your employer is a nonprofit or credit-union type sponsor and you need scalable administrative services with strong investment platforms.

Why HR likes them: strong investment options, competitive recordkeeping, and experience serving non-ERISA plan types.

Watchouts: non-governmental 457s have different rollover rules and protections — work with plan counsel to vet provider contracts.

10. Prudential / The Standard / Regional recordkeepers — Niche strengths for plan sponsors

Overview: Prudential and The Standard still appear in many municipal and state plan groupings. Regional or specialized recordkeepers may also be the right choice when you want deeply customized participant communications, or a provider experienced with your state’s legislative and payroll quirks. 

Why HR likes them: capable of customization, experienced actuarial/administrative teams, and often competitive pricing for mid-sized plans.

Watchouts: when using a regional vendor, confirm roadmaps for digital features and integrations with payroll/HRIS systems.

How We Ranked These (Practical HR Lens)

This list is neither an absolute “best” nor a blind popularity contest — it prioritizes vendors you will actually encounter during RFPs for public-sector and nonprofit 457 plans in 2026. The ranking factors I used:

• Market presence in public & nonprofit sectors (which vendors appear frequently on state/local plan pages and municipal RFPs).
• Strength of participant experience (web and mobile tools, retirement planning calculators).
• Breadth and clarity of investment menu (index vs active funds, stable value, annuities, brokerage).
• Fiduciary and plan-sponsor support (reporting, ERISA compliance where applicable, plan document assistance).
• Flexibility & pricing transparency (ability to customize and provide clear fee disclosures).

Because 457 plans are often local, your final choice should weigh implementation experience in your exact employer type (city, county, higher ed, hospital, nonprofit) more than a national “top 10” label.

Practical RFP Checklist for HR & Benefits Teams

When you put these vendors through an RFP, ask for straight answers on:

1. Total plan cost: itemize per-participant recordkeeping, investment expense ratios, and any revenue sharing or sub-TA fees.
2. Implementation timeline & payroll integration: sample timelines and which payroll vendors they’ve integrated with recently.
3. Participant UX: live demo of participant portal and mobile app; sample enrollment emails and engagement reports.
4. Investment lineup: list funds with share classes and net expense ratios, plus options for low-cost index funds.
5. Customized communications: sample enrollment success metrics and language targeted to your employee groups.
6. Advisory & fiduciary support: what fiduciary services or wrap agreements are included or available as paid options.
7. Plan transitions & data migration: references for similar-sized plans they’ve migrated in the last 24 months.
8. Loans, withdrawals, and distribution admin: how in-service withdrawals, hardship requests, and separation processing are handled.
9. Roth/after-tax support and rollovers: whether Roth deferrals are allowed and the mechanics for incoming/outgoing rollovers.
10. Reporting & analytics: dashboards for committee oversight, participation rates, deferral averages, and demographic breakdowns.

Quick Vendor Selection Scenarios — Who to Prefer When

• You want best overall participant experience and scale: Empower or Fidelity.
• You need tailored public-sector expertise and municipal focus: MissionSquare or Voya.
• You want conservative options and stable value focus: Nationwide or Prudential.
• You run an education institution or nonprofit that values annuity/lifetime income: TIAA or Equitable.
• You’re a mid-sized county or school district with local support needs: consider regional recordkeepers or Corebridge/AIG for hands-on service.
  

Implementation Tips for HR (to Make a Change Go Smoothly)

• Form a small steering committee (HR, payroll, finance, legal, benefits consultant) — 457 transitions touch many systems.
  
• Map payroll deduction and remittance flows before signing — unexpected differences in timing are common across vendors.
  
• Plan a phased communications rollout: leadership memo → benefit meetings → reminders → one-click enrollment links.
  
• Offer multiple education formats: short videos, 1:1 virtual enrollments, and in-person sessions for shift workers.
  
• Negotiate service-level agreements for onboarding, data reconciliation, and participant call center metrics.
  

Final takeaways for HR leaders

1. There’s no single “perfect” 457 provider. Match vendor strengths to your employer type and the participant population you serve.
   
2. Focus on total cost and transparency. Low visible recordkeeper fees don’t always mean low overall plan cost — ask for all fund share classes and revenue disclosures.
   
3. Digital and payroll integration matter. A slick participant app is great, but if payroll integrations are brittle your enrollment and deferral accuracy will suffer.
   
4. Get references from similar employers. A vendor’s experience with a large state plan doesn’t automatically translate to success with a municipal or nonprofit sponsor.
   
5. Run a short pilot or phased rollout if possible. That helps catch real-world wrinkles in payroll timing and participant behavior.