California’s Subsequent Injuries Benefits Trust Fund (SIBTF), a state-run program offering supplemental benefits to injured workers with preexisting conditions, is under increasing financial strain as claims continue to surge. The SIBTF’s 2024 report shows annual payouts surged from $13.6 million in 2010 to $232 million in 2022. Projected liabilities for claims over the past 12 years reach $7.9 billion, with estimates ranging from $6.4 to $10.5 billion.
Broad interpretations of SIBTF’s decades-old, unclear statutes on eligibility and compensation drive the escalation in claims. These ambiguities have expanded claim eligibility, prompting representatives and vendors to pursue benefits for injuries previously receiving little or no compensation.
SIBTF rules allow for workers’ compensation benefits that exceed typical amounts, providing crucial assistance to those with exacerbated disabilities. However, this uptick in claims, combined with rising liabilities, has raised concerns among policymakers and stakeholders about the Fund’s long-term sustainability.
The report emphasizes that without policy changes, the SIBTF’s growing liabilities could lead to significant increases in workers’ compensation premiums and assessments for self-insured employers. Decisionmakers are urged to consider reforms that will make the program more financially viable while still supporting California’s injured workers.