August 4, 2025 | SIBTF.org — SIBTF reform delays are now drawing attention across California’s workers’ compensation system. Efforts to reform California’s Subsequent Injuries Benefits Trust Fund (SIBTF) are now facing significant delays, with experts warning that major policy changes are unlikely to materialize before the end of 2025. A recent analysis by the California Workers’ Compensation Institute (CWCI) highlights mounting administrative and financial challenges, but notes that legislative momentum has slowed due to fiscal uncertainty and a crowded legislative agenda.
The anticipated overhaul of SIBTF—intended to tighten eligibility criteria and reduce ballooning liabilities—was expected to move forward this session, especially following the July LAO report supporting reform measures like AB 1329. However, CWCI experts now forecast no meaningful reform until 2026 at the earliest.
“With the Legislature focused on broader budget stabilization and election-year pressures, SIBTF reform has slipped from the priority list,” said a CWCI analyst.
Unresolved Liabilities Continue to Rise
Without legislative action, the fund’s financial burden remains on employers. SIBTF assessments are projected to exceed $600 million by year-end. This trajectory has raised red flags among legal analysts and workers’ comp stakeholders who fear long-term insolvency if no corrective policies are adopted soon.
The program’s expansion—now covering less severe conditions—has contributed to the backlog of over 25,000 pending claims. Critics argue that unless clear eligibility standards are implemented, the fund will continue to deviate from its intended purpose: supporting workers with permanent, serious pre-existing disabilities compounded by subsequent injuries.
Limited Progress on Reform Bill AB 1329
The centerpiece legislation, AB 1329, proposes narrowing eligibility and requiring more rigorous documentation. However, the bill has stalled in committee, with no floor vote scheduled before the end of the current session.
Lawmakers have indicated a need for further data, stakeholder input, and political compromise—factors that will likely delay any substantial action until 2026.
To read CWCI’s full policy commentary and explore deeper insights into the delay in SIBTF reform, visit CWCI.org.
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Read More from SIBTF.org:
- AB 1329 Senate Hearing Moves Forward on SIBTF Reform
- WCIRB Releases New X-Mod Estimator for 2025: Impact on SIBTF Claims
- California Workers’ Comp Experience Declines in 2024: Impacts on SIBTF Payouts
FAQs: SIBTF Reform
What is delaying SIBTF reform in 2025?
SIBTF reform is delayed due to California’s current budget constraints and legislative priorities, pushing meaningful changes to at least 2026 despite rising liabilities.
How would proposed SIBTF reform affect current claims?
If passed, SIBTF reform could tighten eligibility requirements and documentation standards, potentially reducing access for some claimants while easing employer assessments.
Is AB 1329 still active in the push for SIBTF reform?
Yes, AB 1329 remains the leading bill proposing SIBTF reform, but it has stalled in committee and is unlikely to move forward before the legislative session ends.
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.