I agree with others that this does not make sense.

You may have a pension that has a mandatory contribution. These are not “invested”, but are used to fund the pension system, which is a defined benefit plan.

The 457 is a defined contribution plan, and you should be able to contribute to it, or not, as well as invest it, or not. Some agencies have set up a percentage contribution by default, because they have found more people will invest in their retirement this way (requiring an opt-out) over having to set it up themselves (requiring opt-in).

While I don’t have a 457, I do have both a pension (defined benefit) and TSP (fed version of 401k, defined contribution).

Hopefully you hear back soon, and the confusion will have been due to a misunderstanding.

Suggested: 457 vs. rental sale for multigenerational home down payment?

A couple of questions/terms to look into. You’re sure it’s a 457, right? I’ve heard of 401(a) plans having mandatory contributions and no way for employees to adjust the amount. Might you have a 401(a) and a 457?

Do you have an account login where you can see your account balance? Have you explored it to see if there’s a way to invest the funds? Some employer-sponsored retirement plan websites are completely obnoxious- I saw one where the participant had to click on “Change Contributions” 4-5 times on 4-5 different pages before they got to the actual screen that showed the investment options.

The advisor is probably correct about not being able to roll it out while you’re still working there. This is plan-dependent, but it’s common to not offer in-service distributions.

Lastly, ask if your plan has a Summary Plan Description. I know this is the term for a 401(k) plan’s documentation. The SPD (or similar) will tell you all the details of the plan- in-service distributions, fees, Traditional vs Roth options, etc etc.

When you asked if this affects contributions you make to a Roth, if you mean Roth IRA, then no, it’s doesn’t affect that. The limits for a 457, a 401(k), and an IRA are all separate. If you have access to all three and can afford to max them all out, the IRS code allows it.

Worth a look: 401k rollover after job loss: Roth or traditional IRA?

I’ve never heard of a 457b that cannot be invested. I don’t think you are getting the right information.

I would encourage you to check your information because none of this seems right.