July 23, 2025 | SIBTF.org – SIBTF Reform Bill AB 1329 is drawing attention as proposed legislative reforms to California’s Subsequent Injuries Benefits Trust Fund (SIBTF) program could save the state’s employers billions in future assessments, according to a new policy and budget analysis released this week. Among the most closely watched measures is AB 1329, a proposal that aims to streamline claim eligibility, reduce litigation costs, and improve audit oversight.
The findings, released by several policy researchers and cited in Workers’ Comp Executive and WorkCompCentral, suggest that the current structure of the SIBTF program—while essential to workers with compounding injuries—may be overdue for structural change due to its rising fiscal impact on both public and private employers.
SIBTF Reform Bill Could Address Long-Term Cost Drivers
The report outlines how SIBTF has grown significantly in claim volume and payout amounts over the last decade. Without intervention, the fund could exceed current budget forecasts by 2027.
Key proposals under AB 1329 and related policy recommendations include:
- Refining Eligibility Standards: Clarifying the threshold of pre-existing disability necessary to qualify for SIBTF benefits.
- Expedited Review Process: Reducing delays in case resolution by standardizing medical and vocational documentation requirements.
- Audit and Oversight Enhancements: Increasing the California Department of Industrial Relations’ (DIR) ability to monitor and audit long-tail claims.
- Assessment Reform: Revisiting how employers are assessed to fund SIBTF, particularly in cases involving overlapping indemnity payments.
Stakeholder Response to Proposed SIBTF Reforms
Major industry groups, including employer coalitions and self-insured associations, have voiced strong support for the reforms, citing years of escalating SIBTF-related assessments and legal uncertainty.
However, some labor advocates warn that overly restrictive eligibility changes may risk cutting off supplemental benefits for vulnerable injured workers who rely on the SIBTF as a safety net. Negotiations are expected to continue through the fall legislative session.
For full bill text and committee analysis, visit LegiScan – AB 1329.
Potential Savings for Employers
The state’s Legislative Analyst’s Office estimates that successful passage and implementation of SIBTF reforms like AB 1329 could reduce employer-funded assessments by up to $3.2 billion over 10 years. These savings could be reinvested in early intervention programs, safety training, and faster return-to-work support.
The reforms also seek to rebalance the SIBTF system to support only the most qualified cases, reducing potential fraud or duplicative claims from overlapping indemnity programs.
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Read More from SIBTF.org:
- Commissioner Lara Alerts State Leaders to Rising Workers’ Comp Costs
- CWCI Report: Claim Counts Fall, But Losses Surge in California’s Self-Insured Sector
- 2025 SAWW Rise Boosts Workers’ Comp and SIBTF Payouts
FAQs: Understanding SIBTF Reforms and AB 1329
What is AB 1329?
AB 1329 is a California Assembly Bill proposing changes to the SIBTF program, including eligibility criteria, documentation standards, and audit enforcement. The SIBTF Reform Bill aims to improve program efficiency while maintaining support for severely injured workers.
How much could SIBTF reforms save employers?
Policy estimates suggest up to $3.2 billion in reduced assessment costs over 10 years, depending on implementation timelines and claim volume shifts. These savings are a central argument in favor of passing the SIBTF Reform Bill.
Will current claimants lose benefits if AB 1329 passes?
The bill includes a grandfather clause for existing claims, ensuring that only new applicants are subject to revised rules. However, some litigation timelines may be impacted under the proposed SIBTF Reform Bill changes.
How do SIBTF assessments affect employers?
Employers contribute indirectly through state assessments, which fund SIBTF payments. Rising claims have led to higher assessments, especially for high-injury industries—one of the concerns prompting the introduction of the SIBTF Reform Bill.
Where can I track AB 1329’s status?
You can monitor bill progress, amendments, and legislative hearings via the California Legislative Information Portal. The portal provides up-to-date information on the SIBTF Reform Bill and its path through the legislature.
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.