While denying culpability, SunGard said it nevertheless agreed to the settlement with the US Justice Department to “ensure that its continuing support of the federal government retirement plan proceeds without distraction, and to expeditiously resolve the civil action,” the company said in a news release. The charges came as part of a subcontract under which SunGard was to build and implement a new retirement plan system for federal employees.
The new Thrift Savings Plan system – based upon a customized version of SunGard’s OmniPlus system – went live in June, 2003 and is now serving more than three million civilian and military employees of the federal government (See Taking the Bull by the Horns: Plan Sponsor of the Year ), the news release said.
“We are disappointed that these unjustified allegations were ever made, and we are gratified that they are now being dismissed,” commented Ray Davis, group chief executive officer of SunGard Employee Benefit Systems, in the statement.
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