Parents & Children Join Child Care Providers For Somber Candlelight Vigils Marking Closure Of Over 5,600 Child Care Providers In CA

Child care providers who are members of Child Care Providers United (CCPU) were joined by parents and children today as they held socially-distanced candlelight vigils in San Diego, Los Angeles, and Fresno to raise awareness of the loss of over 5,600 child care businesses in California. The child care system, in crisis before COVID-19, has been completely decimated by the pandemic, speakers said at events outside Governor Newsom’s offices across California.

The state took meaningful action by waiving family fees for children not attending care, which is a step in the right direction to support stability in the Early Care and Education system, but scores of providers are still closing each week and the vast majority are women-of-color-owned businesses. For some providers, the scars of the 2008 recession are still fresh, as many closed, never recovered financially, and were unable to reopen. “My child care has been open for 16 years. I worked overnight for six years to obtain my Associate’s Degree in Early Childhood Development to offer the highest quality of care in my area,” said Claudia Carcamo, a provider from Los Angeles. “But once COVID-19 struck, I went from 14 children to three. I am devastated, and if we don’t get concrete help soon, I will have to close my doors this December.”

At each location, community members implored Governor Newsom and state legislators to take urgent action to support child care providers, the parents who count on them to get to work in frontline jobs, and the children who rely on access to critical early childhood education.

“As a single mom, working on the frontline in health care, I have peace of mind at work while my daughter is enrolled in local child care,” said Vanessa Okeefe, a parent from Alameda County. “It’s a great relief to know she’s safe, receiving support while distance learning, and her school work is getting completed.”

A recent study showed provider costs associated with the pandemic have increased by up to 75% as they take on additional expenses and duties to support distance learning for school-age children whose parents must work. Costs include hiring additional staff to support online learning, necessary equipment upgrades including stronger internet capacity and additional computers, and purchasing more essential supplies such as food and sanitation products.

Child care providers who were already on the brink before COVID-19 simply can’t afford to absorb these costs. “We need Governor Newsom to step up and ensure early childhood education is funded and that starts by keeping family child care providers open during a pandemic,” said Geniese Ligon, a teacher and vice-principal from San Diego. “It is time for our government to stop spinning out of control and to start spending on our future.”

Study after study has shown that access to quality early childhood education drastically reduces achievement gaps all the way through high school graduation, which is particularly important since many of the children that providers care for are children of color. Local education officials have joined the call for state support to keep child care providers afloat. “As an educator, community servant, and a product of the early education system, I will do everything in my power to ensure that all children receive a high quality education like the one I was blessed to receive,” said Dr. Daren Miller, a trustee of the Fresno County Board of Education.

Child care providers are asking the state to: 

— Generate revenues to increase reimbursement rates for providers who have children in their care participating in distance learning to accurately reflect the cost of this care, as some providers have seen their monthly costs increase by up to 75%.
— Financially support providers who have to close their doors out of an abundance of caution following potential COVID-19 exposure, so that they’re able to reopen and continue their role as essential workers in our communities.

WHAT – What benefits does the Retirement Fund expect to offer providers?

Expand the Retirement Fund Benefits Table to see benefits.

 

 Plan Rules
Eligible participants*

You are eligible to participate in the Retirement Plan for a 2024 contribution if you are:

  • A licensed child care provider
  • Who has been paid 6 or more months of child subsidy in the 2023 calendar year (can be non-consecutive months).
Eligibility for benefit credit for contributions in 2024*

You will earn your full service credits for 2023 if you were paid for ten or more months of child subsidy in 2023.

If you were paid for 6 or more months of child subsidy, you will receive 60% of your service credits, 70% for 7 months, 80% for 8 months and 90% for 9 months. You will not earn any service credit if you were paid for less than 6 months.

ContributionsThe only contributions to the Retirement Plan will be paid by the State. The Plan does not accept contributions from you.
Amount of annual employer contributions for 2023 service allocable to participants in 2024*

The amount of the State contribution on your behalf in 2024 will be based on two factors:

(1)  the number of years and months that you held a license as of 12/31/23; AND

(2)  the number of months that you were paid for a subsidized child in 2023.

  • If you were paid for ten or more months, you will receive your full contribution.
  • If you were paid for 6 to 9 months, you will receive a pro-rated contribution.
  • If you were paid for less than 6 months, you will not receive a contribution in 2024.
Amount of annual employer contributions for 2024 service allocable to participants in 2025*You will earn one full service credit for the State contribution on your behalf in 2025 if you were paid for ten or more months of child subsidy in 2024. If you were paid for 6 to 9 months in 2024, you will receive a pro-rated service credit. You will not earn any service credit if you were paid for less than 6 months in 2024.
VestingYou are “vested” in any contribution correctly made to your account. You do not need to work a minimum number of years before 2024 to be entitled to a benefit.
Distribution events

You can elect to receive your account when:

  • You stop all work as a licensed provider for 9 consecutive months at any age (“terminate from service”);
  • You stop all work as a licensed provider for 3 consecutive months at age 60 or older (“retirement”); or
  • You attain age 73, which is the age you are required to start receiving payments, unless you are still working.
Forms of distributions

If you are age 60 or older and stop all work as a licensed provider for 3 consecutive months and elect to retire, you can choose to receive your account balance as:

  • One lump-sum payment
  • Approximately equal monthly payments for 5 years
  • Approximately equal monthly payments for 10 years

If you are younger than age 60 and stop all work as a licensed provider for 9 consecutive months, you can only elect to receive your account as one lump-sum payment.

Death benefitsSince your account is 100% vested, you can designate a beneficiary (or multiple beneficiaries) to receive your account balance if you die before you receive it.
InvestmentsThe Board of Trustees will manage how the Retirement Plan is invested on your behalf, with the assistance of investment professionals.

*Special rules apply to providers where more than one provider is on the payment record.

who

Who is eligible for the Retirement Fund benefits?

State contributions to the Retirement Plan are tied to the child care subsidy program. To be eligible for retirement benefits in 2024, you must be a licensed provider who has have been paid for work with a subsidized child in at least 6 months in 2023-these months do not need to be consecutive. License exempt providers are not eligible; however, if you become licensed in a year, your work in that year may count for eligibility.

when

When will the benefits be available?

State contributions to the Retirement Plan are tied to the child care subsidy program. To be eligible for retirement benefits in 2024, you must be a licensed provider who has have been paid for work with a subsidized child in at least 6 months in 2023-these months do not need to be consecutive. License exempt providers are not eligible; however, if you become licensed in a year, your work in that year may count for eligibility.

how

How can I get help enrolling?

The Plan will automatically enroll you based on the information it has but you should immediately complete the form that the Plan will send you to be sure that the Plan has all of your current information and that you receive credit for your years of licensed work.