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Division of Workers' Compensation seeks 15 positions as SIBTF claims and lifetime liabilities surge
Summary
DWC requested 15 positions and $2.7 million in special funds to handle an increased workload of subsequent-injury claims. LAO summarized RAND's finding that lifetime employer-funded liabilities for existing and pending SIBTF claims were estimated at roughly $7.9 billion (claims through early 2024), and urged legislators to evaluate fund structure
The Department of Industrial Relations' Division of Workers' Compensation asked the Assembly Budget Subcommittee No. 5 for 15 positions and $2.7 million in special funds to handle a large increase in Subsequent Injuries Benefit Trust Fund (SIBTF) claims and related workload.
Chaz Alamo of the Legislative Analyst's Office outlined the SIBTF's purpose and recent trend lines: the fund was established after World War II to spread the cost of pre-existing disabilities so employers would not shoulder a combined liability for a worker's prior condition plus a subsequent work injury. LAO and division staff said both the number and average cost of claims have risen substantially in recent years; LAO highlighted a RAND Corporation analysis (included in the BCP materials) that estimated lifetime employer-funded liabilities for current and pending SIBTF claims at approximately $7.9 billion for cases through early 2024.
DWC administrative staff described the unit's heavy workload: caseloads increased from roughly 9 examiners handling about 9,000 cases in 2019 to 21 examiners with roughly 20,000 open cases now, producing examiner caseloads of 900—000 cases each compared with an industry average of about 400. The division characterized SIBTF work as protracted and complex: many claims involve extensive medical record reviews, investigations and long litigation timelines that can take several years to reach resolution.
DWC framed its request as modest compared with the program's growth and said the additional positions would allow more timely claims processing while urging the legislature and administration to consider broader policy or statutory changes to limit growth of lifetime liabilities. LAO said the subcommittee should consider SIBTF in the context of employer costs overall and evaluate whether the program is achieving intended policy outcomes given its growing fiscal footprint.
Committee members asked for further analysis; no final policy decision was taken at the hearing.
