September 3, 2025 | SIBTF.org – The SIBTF program is under scrutiny after a new review by California’s Legislative Analyst’s Office (LAO). The report concluded that the program no longer matches its original purpose. Originally intended to support severely disabled workers, the Subsequent Injuries Benefits Trust Fund has expanded to cover more common conditions, driving explosive growth in claims, backlogs, and liabilities.
The LAO further noted that employer assessments funding the SIBTF have skyrocketed from just $35 million in 2014–15 to an estimated $850 million in 2024–25, with thousands of claims still pending. This rapid growth has created unprecedented financial exposure, while injured workers now face five- to ten-year processing delays before claims are resolved. The analysis warned that unless eligibility is narrowed and oversight improved, the SIBTF program could continue drifting away from its intent and impose unsustainable costs on California’s workers’ compensation system.
Why the SIBTF Program Is Misaligned
The LAO report explains that the SIBTF program now mirrors benefits already available through workers’ compensation, creating duplication rather than supplemental support. This expansion has pushed employer contributions to unprecedented levels, projected at more than $850 million in 2024–25.
In addition, the LAO highlighted that the SIBTF program is increasingly granting lifetime weekly benefits—sometimes averaging $1,700 per week—for conditions such as arthritis, hypertension, or sleep apnea, which were never part of its original scope. These awards, layered on top of standard workers’ compensation, have created long-term obligations in the billions. Analysts warned that such growth not only blurs the distinction between SIBTF and regular workers’ comp but also places mounting strain on California employers who fund the system through assessments.
Delays and Rising Liabilities
The LAO also revealed that claimants face extreme processing delays, sometimes waiting five to ten years for resolution. These backlogs strain the Department of Industrial Relations (DIR) and undermine the program’s effectiveness, leaving injured workers in limbo.
According to the analysis, more than 25,000 SIBTF claims remain unprocessed, creating an unprecedented backlog with billions of dollars in potential liabilities. The lack of sufficient staffing and outdated processes within DIR have compounded the problem, leading to increased litigation and administrative costs. The LAO cautioned that without immediate intervention, delays will continue to grow, further eroding confidence in the SIBTF program and leaving injured workers without timely support.
The Call for Reform
To restore balance, the LAO recommends narrowing eligibility, improving oversight, and restructuring funding. Without reform, the SIBTF program risks becoming unsustainable, both for employers who fund it and for the workers it was meant to serve.
The report further suggested that legislators revisit the core mission of the SIBTF, ensuring it targets only those with significant pre-existing disabilities rather than duplicating standard workers’ compensation. Potential reforms include stricter eligibility requirements, aligning benefit levels with financial sustainability, and investing in staffing resources to clear existing backlogs. These changes, according to the LAO, are critical to preventing the program from drifting even further from its intended purpose.
Source: Legislative Analyst’s Office Report.
Stay updated on policy changes and reforms to the SIBTF program at SIBTF.org.
Read More from SIBTF.org:
- Troubled SIBTF Needs More Staff: DIR Struggles Amid Rising Backlogs
- Legal Guidance: Overcoming SIBTF Claim Challenges 2025
- SIBTF Reform 2025: Expert Warns of $26B Systemic Threat
FAQs: SIBTF Program
What is the purpose of the SIBTF program?
The SIBTF program was designed to help workers with pre-existing disabilities who suffer new workplace injuries, offering supplemental benefits.
Why does the LAO say the SIBTF program is misaligned?
Because it has expanded to cover common conditions like arthritis and hypertension, straying from its original intent.
What reforms are suggested for the SIBTF program?
The LAO recommends limiting eligibility, adding oversight, and creating a more sustainable funding structure.
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.