October 10, 2025 | SIBTF.org — The 2025 Assessment Rate Update is now active, establishing a key benchmark for next year’s Self-Insurers’ Security Fund (SIBTF) contribution projections. For 2025, self-insured employers contribute 5.7% of payroll, while insured employers use a 3.0% assessment factor. These rates serve as a baseline for evaluating the Department of Industrial Relations (DIR) outlook as it prepares for 2026’s financial conditions.
What Will Influence 2026 Assessment Rate Adjustments?
Rate changes depend on multiple pressure points that affect the state’s self-insurance system. The 2025 Assessment Rate Update provides a reference point for how these variables may influence next year’s figures. The DIR could propose rate increases if claims frequency rises, wage inflation accelerates, or medical cost growth outpaces reserves. Conversely, a decline in claims severity or improved investment returns could ease assessment pressures.
Legislative and economic trends also weigh heavily. Any amendments to the Labor Code, policy shifts in loss funding mechanisms, or changes in actuarial assumptions may compel the DIR to rebalance the fund’s contribution formula.
Legislative Proposals: AB 1329’s Potential Impact
If AB 1329 or similar legislative measures pass in 2025, they could significantly alter the base calculation used for 2026 rates. The bill, which proposes expanding benefit eligibility and revising apportionment rules, may widen the funding gap, leading to higher employer assessments. In that case, the 2025 Assessment Rate Update would serve as an essential benchmark for evaluating these legislative impacts. DIR analysts would likely revise actuarial models to ensure adequate solvency of the SIBTF, particularly if benefit liabilities increase faster than expected.
For ongoing tracking of legislative activity, visit the California Legislative Information Portal.
Economic Indicators to Watch
The 2025 Assessment Rate Update highlights several economic signals that the DIR and SIBTF will monitor closely as they prepare 2026 projections.
- Wage growth: Rapid increases expand the payroll base but also raise exposure costs.
- Claims activity: Higher indemnity or medical claims push rates upward.
- Fund solvency: If reserve ratios tighten, the SIBTF may recommend an assessment bump.
- Investment returns: Market gains can relieve funding pressures temporarily.
The balance between these factors will determine whether 2026 assessment rates rise above or remain near 2025’s benchmarks.
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Read More from SIBTF.org:
- SIBTF 2026 Budget Proposal Highlights Sharp Liability Growth
- Backlog Bottleneck: How Delayed QME Evaluations Inflate SIBTF Exposure
- SIBTF Regulatory Changes 2025: Public Comment Period Opens
FAQs: 2025 Assessment Rate Update
What is the current 2025 SIBTF assessment rate?
Self-insured employers pay 5.7% of payroll, while insured employers use a 3.0% factor as per the 2025 update.
Who determines the SIBTF assessment rates?
The Department of Industrial Relations (DIR) and the Self-Insurers’ Security Fund review actuarial data and claims trends to set annual rates.
How could AB 1329 affect 2026 rates?
AB 1329 could expand benefits and adjust funding requirements, potentially prompting a rate increase to maintain fund solvency.
When will the 2026 rates be announced?
DIR typically issues the following year’s assessment rate updates by Q4 of the current year, following legislative and actuarial review.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) helps California workers who suffer a new workplace injury and already had a prior disability. It offers supplemental compensation when combined impairments severely limit earning capacity.