July 2, 2025 | SIBTF.org – Senate Bill 555, introduced in early 2025, proposes cost-of-living adjustments (COLA) for Permanent Partial Disability Benefits. If enacted, the bill could significantly affect how long-term Subsequent Injuries Benefits Trust Fund (SIBTF) claims are calculated and maintained.
How SB 555 Could Reshape Permanent Partial Disability Benefits in California
Introduced by Senator Anna Caballero and co-authored by Senator John Laird, SB 555 aligns PPD benefits with annual Social Security COLA rates. This would mark the first adjustment to these benefit levels since 2014. By tracking inflation, the bill aims to preserve the value of long-term workers’ compensation payments, particularly for workers with cumulative injuries and prior disabilities.
For SIBTF claimants, who often rely on long-term supplemental benefits, the legislation promises more equitable compensation over time.
Legislative Progress and Stakeholder Interest
The bill cleared its initial hearings and, as of May 2025, was placed on the Appropriations Committee suspense file for fiscal review. Advocates argue the proposal is long overdue, especially as fixed benefit levels lose purchasing power year after year.
Employers, labor groups, and applicant attorneys are watching closely. Many believe the change would modernize outdated disability valuation models, aligning benefits with real-world economic conditions.
According to industry coverage by Rancho Mesa Insurance, SB 555—if passed—could raise Permanent Partial Disability benefits annually, reflecting inflation, with projected program costs of $570 million to $907 million over eight years.
Implications for SIBTF
If passed, SB 555 would reshape SIBTF payout calculations and eligibility projections. Actuarial forecasts would need updating to reflect rising costs, while claimants could expect more stable income streams.
Support Fair Compensation Through Legislative Reform. Track SB 555 and other updates shaping long-term SIBTF benefits. Visit SIBTF.org for policy tools, updates, and legal resources.
Read More from SIBTF.org:
- RAND Report: $7.9B SIBTF Liability Still Driving 2025 Reform Efforts
- CHSWC Meeting to Address Workers’ Comp and Safety Updates
- DWC Adjusts Official Medical Treatment Utilization Schedule
Will SB 555 Automatically Increase My Permanent Partial Disability Benefits?
No, SB 555 has not yet been enacted. If passed, it would introduce annual cost-of-living adjustments (COLA) to Permanent Partial Disability Benefits in California. These changes would apply prospectively and may require updates to existing SIBTF claim evaluations. Claimants should monitor legislative updates or consult with a workers’ compensation attorney to understand how the bill may affect their specific case.
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.