QUOTE (Everett Moreland @ Mar 11 2010, 12:03 PM)

You are right; governmental 457(b) plan assets cannot be held in a a rabbi trust. See the following from 1.457-8(a)(2)(i):
"The terms of the trust must make it impossible, prior to the satisfaction of all liabilities with respect to participants and their beneficiaries, for any part of the assets and income of the trust to be used for, or diverted to, purposes other than for the exclusive benefit of participants and their beneficiaries."
Thanks, I was stating to question myself and it is nice to have confirmation that I have not lost it completely.