The Federal Retirement Thrift Investment Board, Washington, which manages the $100 billion Thrift Savings Plan, claims the Bush administration is trying to block the boards efforts to claim $350 million in damages from American Management Systems.
The plan filed a lawsuit against the company in July for fraud and breach of its contract to create a new computer-based record-keeping system. On Nov. 30, a U.S. District Court in Washington ruled the plan fiduciaries needed permission from the Justice Department to file a lawsuit. On Jan. 25, the Justice Department asked a federal appellate court not to hear the appeal of the dismissal of the lawsuit. The board is pursuing its appeal and must submit a brief by Feb. 19.
"The Department of Justice is continuing its efforts to stop the plan fiduciaries from acting independently of the Bush administration in initiating and maintaining litigation on behalf of the 2.6 million TSP participants, said Roger W. Mehle, executive director and managing fiduciary of the plan.
Charles Miller, Justice Department spokesman, declined to comment.