August 25, 2025 | SIBTF.org – SIBTF reform efforts took a major step forward when the California Assembly Insurance Committee approved AB 1329 and several related measures designed to address the Fund’s growing liabilities. The package of bills—passed by the Assembly Insurance Committee in April 2025 and now advancing further in August—includes provisions that could reduce the annual SIBTF employer assessment by more than $200 million.
AB 1329 remains the centerpiece of reform, focusing on narrowing eligibility, requiring stronger medical evidence, and transferring administrative authority to the Division of Industrial Relations (DIR). Lawmakers emphasized that without intervention, the Subsequent Injuries Benefits Trust Fund’s (SIBTF) financial obligations—already projected in the tens of billions—could jeopardize the stability of California’s workers’ compensation system.
Why This Vote Matters
The Assembly Insurance Committee’s approval signals meaningful progress in the legislative process. For employers, insurers, and workers alike, this compromise offers the potential for significant cost relief while maintaining critical protections for injured employees with qualifying disabilities.
By advancing AB 1329 and related bills, lawmakers have shown willingness to address long-standing concerns over escalating liabilities and fairness in claims processing. Although the reforms are far from final, this committee vote represents a pivotal moment in the path toward sustainable SIBTF reform.
Next Steps for SIBTF Reform
The bill package now moves to the Assembly Appropriations Committee, where the financial implications will be scrutinized further. Stakeholders—including labor groups, employer representatives, and insurers—are expected to continue lobbying heavily as the legislation advances.
If enacted, the measures could reshape eligibility standards and significantly reduce the financial burden on California employers while helping ensure the Fund’s longevity.
Read more at the original source: WorkCompCentral.
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Read More from SIBTF.org:
- California Assembly Advances SIBTF Reform Bill 2025
- Senate Committee Moves AB 1329 to Suspense File
- CalChamber Reports Surge in SIBTF Claims & Payouts in 2025
FAQs: SIBTF Reform 2025
What changes does AB 1329 propose for the SIBTF?
AB 1329 would tighten eligibility requirements, mandate substantial medical evidence, and transfer administration of the Fund to the Division of Industrial Relations (DIR).
How could the reforms impact employers financially?
The proposed legislation could reduce employer assessments for the SIBTF by over $200 million annually, easing financial strain on businesses across California.
Why is SIBTF reform considered urgent in 2025?
Without reform, liabilities projected in the tens of billions could compromise the sustainability of the Fund and destabilize the broader workers’ compensation system.
Who supports AB 1329 and related reform bills?
Employer groups, business coalitions, and some lawmakers support the reforms as a way to control costs and ensure fair administration, while labor advocates continue to raise concerns about limiting benefits.
What are the next steps for AB 1329?
The bill now heads to the Assembly Appropriations Committee for further review, where lawmakers will evaluate potential fiscal impacts before a floor vote.
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.