Deferred compensation plans tend to offer better investment options than most 401(k) plans, but are at a disadvantage regarding liquidity. This booklet describes the City of New York Deferred Compensation Plan, an umbrella program consisting of the 457 Plan and the 401(k) Plan.Matches only apply to 401(k). 457(b) plans and 401(k) plans are very similar. Both offer you the opportunity to make tax-deferred contributions to a retirement account. Unlike a 401K plan the County does not match the employee contributions. WHEREAS, there is no direct financial cost to the Employer to adopt and implement both a Deferred Compensation Plan and.