July 4, 2025 | SIBTF.org – On July 3, 2025, the California State Senate’s Labor, Public Employment and Retirement Committee held a hearing to evaluate Assembly Bill 1329 (AB 1329), introduced by Assemblymember Liz Ortega. The bill proposes sweeping SIBTF Reform, aiming to overhaul how the Subsequent Injuries Benefits Trust Fund (SIBTF) operates. This includes addressing long-standing issues such as rising fund payouts, outdated eligibility criteria, and administrative inefficiencies. The proposed SIBTF Reform seeks to ensure the program remains financially sustainable while continuing to provide critical support to workers with prior disabilities who sustain new workplace injuries.
What AB 1329 Aims to Change
AB 1329 is designed to modernize the structure of SIBTF by addressing several key areas:
- Reevaluating Eligibility: The bill suggests revising the criteria for injured workers with pre-existing conditions to qualify for SIBTF compensation. This could tighten or redefine the thresholds used to assess whether a claimant’s prior and subsequent impairments meet the statutory requirements for benefits.
- Adjusting Benefit Calculations: Changes to how combined impairments are rated and calculated may affect final benefit amounts. As part of the broader SIBTF Reform, lawmakers are evaluating the mathematical and medical standards used in calculating supplemental benefits to ensure fairness and prevent inflated or inconsistent awards.
- Employer Contribution Review: AB 1329 also calls for a reassessment of employer-funded contributions to ensure better alignment with actual fund usage. This portion of the reform is intended to improve fiscal accountability and address concerns about rising costs passed on to California employers.
The legislation aims to balance the needs of injured workers with the long-term sustainability of the trust fund. If enacted, this SIBTF Reform could reshape not only how benefits are distributed but also how the system is managed, ensuring that it continues to serve its intended purpose while avoiding financial strain.
Potential Impact on Permanent Partial Disability Benefits
For those seeking Permanent Partial Disability Benefits, SIBTF Reform under AB 1329 could bring procedural changes that impact claim eligibility and benefit distribution. If passed, injured workers may face more detailed documentation requirements, particularly when proving the extent of prior disabilities and how they combine with new injuries. Additionally, some applicants may find the claims process more complex due to revised standards in impairment ratings and eligibility thresholds. These reforms aim to enhance oversight and consistency, but could also introduce stricter review processes for new and ongoing claims.
These changes could particularly affect applicants relying on supplemental compensation through SIBTF after sustaining a second injury.
Why It Matters
Policymakers are increasingly concerned with the rising cost of SIBTF administration. According to several legal commentators and analysts, improving efficiency and accountability is necessary to ensure the program can continue serving injured workers without overwhelming contributing employers.
The SIBTF Reform bill has generated significant interest across legal, labor, and insurance sectors, all watching closely as it moves through the committee process and signals potential changes to California’s workers’ compensation landscape.
For the full legislative text and policy analysis of AB 1329, visit the official California Legislature bill page available via LegiScan.
Stay Informed on SIBTF legislative updates. AB 1329 remains under committee review, with future hearings and potential amendments expected in the coming months. Subscribe to SIBTF.org to receive updates on California legislation, workers’ compensation policies, and SIBTF reforms.
Read More from SIBTF.org:
- SB 555 Introduced: COLA for Permanent Partial Disability Benefits
- RAND Report: $7.9B SIBTF Liability Still Driving 2025 Reform Efforts
- CHSWC Meeting to Address Workers’ Comp and Safety Updates
Will AB 1329 Impact My Current SIBTF Claim?
AB 1329, if passed, is expected to apply primarily to new and future claims. Current open claims are unlikely to be affected retroactively, but any future filings or renewals may be subject to the updated guidelines.
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.