April 08, 2025 – SIBTF Pushes CA Employers: In 2025, California employers face a staggering $2 billion in assessments to fund the Subsequent Injuries Benefits Trust Fund (SIBTF). This significant increase reflects a surge in claims and rising costs, putting immense pressure on the workers’ compensation system.
Key Factors Driving the Increase
🔹 Rising SIBTF Claims – Over 2,000 claims were filed annually in recent years, resulting in higher payouts. The number of claims, especially for chronic conditions, is a key driver of this increase.
🔹 Permanent Disability (PD) Rating Changes – Adjustments in case law have made it easier for workers to achieve higher PD ratings. As a result, SIBTF benefits are growing, adding to the fund’s overall financial burden.
🔹 Increased Medical-Legal Reports – The medical-legal process in SIBTF cases remains unregulated, contributing to higher costs. Nearly $1 in every $5 spent by the fund goes toward medical-legal expenses rather than directly benefiting workers.
Impact on Employers
Employers are now responsible for $2 billion in SIBTF assessments in 2025. This sharp increase in liability translates to higher premiums for businesses across California. While these funds are necessary, it’s clear that sustainable reforms are needed to balance the needs of workers and the financial strain on employers. SIBTF Pushes CA Employers
What’s Next for SIBTF?
With the SIBTF reaching historic funding levels, both employers and policymakers face pressure to reform the system. Adjusting claims processes, benefit calculations, and medical-legal oversight will be critical to addressing the growing financial challenges.
➡️ Stay informed about the latest SIBTF updates at SIBTF.org.