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 timely legislative action, the fund’s growing financial burden continues to fall on California employers. SIBTF assessments are projected to exceed $600 million by year-end, fueling concerns among legal analysts and workers’ compensation stakeholders about potential long-term insolvency if corrective measures are not adopted soon.
The expansion of the program—now covering less severe conditions—has also contributed to a backlog of over 25,000 pending claims. Many experts argue that meaningful SIBTF reform is essential to address these challenges. Without clear eligibility standards, stricter documentation requirements, and refined oversight processes, the fund risks straying from its original purpose: supporting workers with permanent, serious pre-existing disabilities who suffer subsequent workplace injuries.
Comprehensive SIBTF reform could help reduce the claims backlog, ensure that benefits are directed to the most severely impacted workers, and relieve employers from escalating premium pressures. Stakeholders agree that addressing both eligibility and funding mechanisms is critical to stabilizing the program and maintaining trust in California’s workers’ compensation system.
Limited Progress on Reform Bill AB 1329
The centerpiece legislation, AB 1329, aims to tighten eligibility criteria and enforce more rigorous documentation for SIBTF claims. While the bill is central to ongoing SIBTF reform efforts, it has stalled in committee, and no floor vote is scheduled before the current legislative session ends.
Lawmakers have cited the need for additional data, stakeholder input, and political compromise as key reasons for the delay. These factors suggest that meaningful SIBTF reform through AB 1329 is unlikely to advance before 2026. The pause highlights the complexities of balancing fiscal responsibility, employer interests, and the rights of workers with pre-existing disabilities.
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.