CHILD CARE PROVIDERS VOTE TO RATIFY FIRST-EVER COLLECTIVE BARGAINING AGREEMENT WITH THE STATE OF CALIFORNIA

For Immediate Release
July 26, 2021
Contact: Maya Polon, (916) 444-7614
 

Sacramento, CA – Members of Child Care Providers United (CCPU), California’s union representing 40,000 family child care providers, voted overwhelmingly to ratify their first-ever collective bargaining agreement with the State of California. The historic agreement includes long-overdue pay raises for providers, investments in continuing education for a predominantly women of color workforce, and critical investments that strengthen access to care for working parents and support California’s recovery from COVID-19.

In an election held from July 12 to July 26, 99.6% of all CCPU members who participated in the ratification process voted to accept the agreement. The complete agreement is available here.

“Working long hours is nothing new for child care providers like me; that’s what it takes to provide quality early childhood education for the young children of working families in Sacramento County and around the state. When providers started organizing almost two decades ago, we knew it would mean even longer days testifying at the capitol, marching across the state, and rallying to have our voices heard. But we knew that’s what we had to do to strengthen the profession and lift working families and their children. We could barely pay our bills before COVID hit, and we watched our union siblings close their doors when they simply ran out of money to pay their mortgages. Thanks to the providers who voted to ratify this agreement and the parents and legislative leaders across the state who stood beside us in this fight, we finally have room to breathe again,” said Charlotte Neal, a Sacramento child care provider for more than 20 years and CCPU Negotiations Team member.

Justine Flores, a Los Angeles child care provider for six years and member of CCPU’s Negotiations Team, added, “this is why I joined my union — to make my voice heard; to have a seat at the table where the decisions get made. Days turned to nights as we went back and forth with state negotiators demanding our first pay raise in 5 years, COVID assistance as we took on greater expenses, and supports allowing more providers to join our workforce. This victory, led by Brown and Black women, is significant. We showed the whole nation that when providers join our voices together, we are impossible to ignore.” 

“This moment is why union membership matters,” said Angelica Mares, a child care provider for 20 years in Delano. “I cast my vote last week, and for the first time, I got to have a say in my future as a provider. Before I joined CCPU, I had no way to talk to the State of California about my pay or working conditions. Joining CCPU, I finally felt my voice was heard. I’ll have the opportunity to take more classes and not worry about permanently closing my doors if I fall ill. I look forward to more opportunities to work with my union to support the best child care infrastructure in the country.”

The State of California ratified its side of the collective bargaining agreement via AB 131, this year’s child care budget trailer bill that the legislature passed two weeks ago, and Governor Newsom signed into law on Friday, July 23.

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Child Care Providers United brings together 40,000 family child care providers across California and is a partnership of SEIU Local 99, SEIU Local 521, and UDW/AFSCME Local 3930. More information on the contract campaign is available at https://www.childcareforall.org/

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.