Additional Benefits after your Work Injury Settlement

The Subsequent Injury Benefit Trust Fund (SIBTF) is a fund that was established in 1945 and is administered by the State of California Division of Workers’ Compensation. 

The Fund provides additional income to persons injured in the workplace with pre-existing conditions. It was designed to encourage employers to hire disabled and impaired workers.

What are SIBTF benefits in California?

SIBTF benefits are payments made by the State of California to the injured worker to compensate the injured worker for their pre-existing disability.

Who qualifies for SIBTF benefits? 

Injured workers qualify for SIBTF benefits if they fall under the requirements of Labor Code 4751.

How much does SIBTF pay?

The amount of benefits paid is the difference between the combined permanent disability and the permanent disability paid for the work-related injury by the employer. 

How long do benefits last?

The benefits payments are paid weekly and continue for the life of the injured worker.

How long does compensation last?

104 weeks. There are 19 states that set a time limit on how long payments last. For example, California pays benefits for up to 104 weeks for most injuries, and up to 240 weeks for severe conditions

What if I already received an Injury Settlement from my employer?

An injury settlement does not disqualify you for SIBTF benefits.  These benefits supplement settlements for work injuries and directly compensate injured workers for any pre-existing conditions present at the time of the injury. 

Are SIBTF payments taxable?

No, SIBTF benefits are not taxable at the state or federal levels. Similar to workers’ compensation benefits, SIBTF benefits are intended to compensate for a loss and are considered non-taxable income.

What is the statute of limitations for SIBTF?

While there is no statute of limitations that directly applies to SIBTF cases, applicants must file the SIBTF application within a reasonable time after recognizing or reasonably should recognizing a substantial likelihood of having a claim for such benefits. The time frame generally requires filing within 5 years of the Date of Injury or 1 year of the Date of Settlement.

How long does it take to settle an SIBTF case?

After filing an application for the Subsequent Injuries Benefits Trust Fund (SIBTF), the application is sent to the Division of Workers’ Compensation for review. It has up to 30 days to either approve or deny your request and send a formal answer to your claim.

How does the second injury fund work?

The Special Fund (also known as the “Second Injury Fund”) pays certain types of claims and expenses authorized by the LHWCA. Claims are paid by the Special Fund only upon application by an authorized insurance carrier or self-insured employer or by Order of the District Director or Administrative Law.

How much are SIBTF payments?

I can tell you that if you are 100% disabled in your SIBTF case, you get paid 66% of your earnings which is the same rate of pay when you received temporary disability (TD) from work comp while out of work and recovering from your work injury.

Is SIBTF retroactive?

Since a “carrier would be responsible for the retroactive benefits payable during that gap,” Peabody said, “it makes sense that SIBTF would also be responsible to make a retroactive payment for that period of time.”

How are permanent impairment benefits compensated?

The amount of your weekly permanent disability payments equals two-thirds of your average weekly wage at the time of your injury, limited by the minimum and maximum rates stated by the California Labor Code.

How to apply for SIBTF?

A worker makes an initial claim by filling out an application and submitting it to the local Workers’ Compensation Appeals Board. The application requires a description of the current work-related injury and the pre-existing condition that caused permanent partial disability.  Access the application form here.

What is SIBTF.org

SIBTF.org is a nonprofit organization founded by medical-legal industry professionals dedicated to educating injured workers and connecting them with potential legal referrals. Its mission is to assist those who may qualify for additional benefits through California’s Subsequent Injury Benefit Trust Fund. SIBTF.org has no direct affiliation with the Subsequent Injury Benefit Trust Fund.