June 27, 2025 | SIBTF.org – One year after the RAND Corporation issued a report warning that liabilities in California’s Subsequent Injuries Benefits Trust Fund (SIBTF) had grown to $7.9 billion, lawmakers and stakeholders are still debating SIBTF liability reform to address rising costs and funding instability. The report continues to shape policy discussions and legislative action in 2025.
Long-Term Obligations Rising Amid SIBTF Liability Reform Push
The RAND study, released in June 2024, examined SIBTF claims between 2010 and 2022. Payouts increased from $13.6 million in 2010 to $232 million in 2022, driven by complex cases, higher benefit awards, and ongoing delays in determining eligibility.
The estimated $7.9 billion liability includes pending claims, long-term benefit costs, and administrative expenses. RAND warned that, without systemic changes, the fund may face unsustainable pressure over the next decade.
Factors Behind the Growth
Multiple factors have contributed to this sharp increase. Legal decisions, including the Todd case, expanded claimant eligibility. At the same time, economic shifts such as inflation and rising medical-legal costs have added financial strain. The extended time it takes to resolve claims has also tied up significant resources.
Together, these conditions have left the fund increasingly vulnerable, especially as claims involving pre-existing conditions continue to grow in complexity and volume.
One Year Later: Where Are We Now?
Since the report’s release, concerns over SIBTF’s sustainability remain active. Proposed legislation in 2025, such as AB 1329 and AB 1398, seeks to tighten eligibility rules, improve claims processing, and revise Qualified Medical Evaluator (QME) procedures.
The RAND report remains a key driver of reform efforts, with its $7.9 billion estimate frequently cited in policy discussions on how to ensure the fund’s long-term viability.
Recommendations for Reform
RAND suggested measures including:
- Adjusting benefit calculation formulas
- Improving processing timelines
- Reviewing QME evaluation practices
- Clarifying eligibility criteria
These recommendations aim to ensure fair compensation for injured workers while maintaining financial balance within the system.
Keep track of SIBTF funding updates, legal changes, and reform proposals to protect your clients, workforce, or business operations. Visit SIBTF.org for current insights and resources.
Read More from SIBTF.org:
- CHSWC Meeting to Address Workers’ Comp and Safety Updates
- DWC Adjusts Official Medical Treatment Utilization Schedule
- Updated 2025 Workers’ Comp User Funding Assessment Rates
FAQs: SIBTF liability reform
What is driving the push for SIBTF liability reform in 2025?
The RAND report revealed $7.9 billion in liabilities within the SIBTF, highlighting concerns over increasing payouts, delayed claims, and eligibility expansions. These pressures have intensified calls for SIBTF liability reform to stabilize the system.
How could proposed legislation affect SIBTF liability reform efforts?
Legislation such as AB 1329 and AB 1398 aims to streamline claims, narrow eligibility, and address administrative inefficiencies—each a core component of SIBTF liability reform. These bills reflect recommendations made in the RAND study.
Where can I learn more about state efforts tied to SIBTF liability reform?
For updates on legislative proposals and fund status, visit the California Department of Industrial Relations website. It offers updates on workers’ comp law, including current SIBTF liability reform discussions.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund provides additional compensation to workers with pre-existing disabilities who suffer new workplace injuries that result in further impairment. It is designed to support equitable benefits in complex injury cases.