Summary
Growth in State and Local 457 Plan Popularity Continues Through 1995—Fifty state and 58 local government 457 plans had assets totaling over $28.5 billion in 1995, according to the National Association of Government Deferred Compensation Administrators' (NAGDCA) most recent semi-annual, voluntary survey of state and local 457 plan sponsors. The majority of 457 plans were established in the 1970s, and these plans currently provide retirement benefits to a number of state and local government employees in all 50 states. This discussion provides an overview of recent major legislative changes in 457 plans, compares 457 plans to 401(k) plans, and analyzes the results of NAGDCA's Survey of 457 Plans for 1993 and 1995.
National Health Expenditure Growth Rate Decelerates in 1994—In 1994, national health expenditures (NHE) climbed from $892.3 billion to $949.4 billion, or 13.7 percent of gross domestic product (GDP), according to data recently released by the Health Care Financing Administration (HCFA). This amounts to a 6.4 percent increase in aggregate spending and a 4.0 percent increase in real NHE over 1993. The 6.4 percent growth in aggregate spending is the slowest growth rate in more than three decades, while the 4.0 percent increase in real NHE matches the slowest real growth rates for health care spending recorded in the past 30 years.