SACRAMENTO, CA — CWCI Speakers: Reforms to the Subsequent Injuries Benefits Trust Fund (SIBTF) are on the radar, but significant changes likely won’t come until after 2025, according to speakers at the California Workers’ Compensation Institute’s (CWCI) annual meeting.
CWCI General Counsel Gideon Baum noted that major legislative overhauls are unlikely during the upcoming election year. “2025 will be focused on the budget and the ballot,” he said, adding that while the system is clearly under strain, “The Post is Broken” theme of the event reflects how many feel—change is needed, but it won’t happen overnight.
📈 SIBTF’s Growth Raises Urgency—but Slows Momentum
CWCI Vice President Stacee Williams presented data showing that SIBTF liabilities have ballooned, with benefit payments surpassing $600 million per year and applications tripling since 2015. Despite this surge, Williams cautioned that meaningful reform is still unlikely in the near term.
“We’re seeing costs go up with no cap in sight,” she said, referencing both medical-legal fees and permanent disability payouts.
Legislators Float Ideas—But Not Fast-Tracking Bills
State Senator Tom Umberg (D-Santa Ana) has proposed renaming the SIBTF to the “Permanent Disability Increase Program (PDIP),” aiming to address long-standing concerns about system inefficiency and public confusion. Still, most insiders agree the bill is unlikely to advance in 2025.
Meanwhile, Assemblymember Liz Ortega (D-San Leandro) emphasized the need for greater oversight and accountability, particularly in how benefits are calculated and verified.
RAND Report Echoes Concerns on Medical-Legal Spending
The RAND Corporation’s 2024 report continues to shape the conversation. The study found that approximately 20% of all SIBTF expenditures between 2010–2022 were tied to medical-legal reports and copy services, not directly to injured workers. That trend, speakers warned, diverts funds away from their core mission.
Business Groups Sound the Alarm
Ashley Hoffman, a policy advocate with the California Chamber of Commerce, said employers are closely watching the fund’s expansion.
“The system was meant to protect the most vulnerable injured workers,” she said. “But the current structure isn’t sustainable for employers or fair to workers without preexisting conditions. Reform must happen—just not in 2025.”
Stay Informed and Prepared
While legislative action may be delayed, the call for structural reform of the SIBTF continues to build. Employers, injured workers, and advocates alike should monitor developments closely—and ensure claims are accurate, complete, and compliant under current law.