A literature search, interviews, and future research methodologies were used to study this issue. Five trends were forecasted: staffing and involvement of the Department's Disability and Retirement Unit, management training and development, State Compensation Insurance Fund's ability to manage workload, disability claims, and employee attitudes. High probability events identified were changes in the law to permit management of cases, disability fraud investigation program, incentive for full-term service retirement, departmental adjustment of its own cases, and management of claims by commanders. Three possible future scenarios were created. This information was the basis for the development of policies to attain the desired future state. Three policies were determined to be both economically and politically feasible: the agency would ensure comprehensive training for supervisors and managers relative to administering and managing disability and injury claims; the agency would manage disability and injury claims; and the agency would establish comprehensive training for supervisors and managers relative to administering and managing disability and injury claims. Plans for strategic management and transition management are also included. 15 notes, a 10-item bibliography, and appended supplementary material