October 17, 2025 | SIBTF.org — California’s newly enacted Assembly Bill 1329 (AB 1329) is set to transform how Subsequent Injuries Benefits Trust Fund (SIBTF) cases are administered for compensable injuries occurring on or after January 1, 2026. The measure introduces new eligibility evidence standards, establishes a Qualified Medical Evaluator (QME) database, and transfers the trustee role from the State Compensation Insurance Fund (SCIF) to the Director of the Department of Industrial Relations (DIR).
Under the law, the Director will now oversee the renamed “Second-Chance Employer’s Risk Reduction Trust Fund,” designed to streamline fund management and improve transparency in claims oversight.
New Eligibility Rules and Medical Evidence Framework
AB 1329 tightens how medical and employment records are evaluated when determining eligibility for subsequent injury benefits. The statute mandates uniform QME reporting through the new DIR database—ensuring consistent standards across cases involving pre-existing disabilities.
These reforms aim to enhance evidence reliability and reduce disputes over apportionment and causation. However, practitioners caution that more stringent documentation standards may initially slow claim processing as employers, insurers, and evaluators adjust to new procedural requirements.
Administrative Shift: DIR Takes Trustee Role from SCIF
The most significant structural change involves the transfer of trustee responsibilities from SCIF to the DIR Director, centralizing financial oversight of benefit disbursements. This move reflects legislative intent to align fund governance with policy accountability, particularly as cost modeling and actuarial data begin feeding into 2026 rate filings and rulemaking proposals.
Observers expect the DIR to release draft rulemaking or fiscal estimates by mid-2026, laying the groundwork for future rate-setting and administrative budgeting.
Watch for DIR Rulemaking and Cost Estimates
Stakeholders should monitor the DIR’s forthcoming notices in the California Regulatory Notice Register. Early cost data and actuarial assumptions will likely influence rate filings and risk-adjusted funding strategies under the new Trust Fund. These filings will help determine whether AB 1329 achieves its intended cost containment and administrative efficiency objectives.
Access the full text and legislative history of AB 1329 here.
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- 2025 Assessment Rate Update Sets the Baseline for 2026 Projections
FAQs: AB 1329 Implementation Impact
What does AB 1329 change about the SIBTF?
It revises eligibility evidence standards, creates a QME database, and shifts trustee duties from SCIF to the DIR Director under a new fund name.
When will the new rules take effect?
The changes apply to compensable subsequent injuries that occur on or after January 1, 2026.
Why is the trustee role being transferred to the DIR?
Legislators aim to improve financial oversight, streamline fund administration, and integrate policy accountability directly under the DIR.
How will AB 1329 affect future rate filings?
Data from 2026 claims and DIR cost estimates will inform rate-setting, potentially reshaping how employers and insurers allocate risk across subsequent injury cases.
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.