Update on COVID-19 Stipends

In April 2021, Child Care Providers United reached our second and largest COVID-specific agreement with the state of California, and we know how vital these stipends are to making sure the needs of both families and providers are met without delay. As providers navigate the impact of the Delta and other variants on child care throughout California, we are proud that we stood together to win support for the work we are doing on the frontlines to provide essential child care.

Our COVID-19 agreements are in effect and providers will receive stipends by the end of September – this includes the $3500 stipend per licensed family child care provider and stipends of $600 per subsidized child.

$600 Per Subsidized Child Stipend: 

  • Providers will receive a $600 stipend per subsidized child enrolled in a family child care home in March 2021 for all state-subsidized programs.
  • Funding is being distributed this week to agencies and contractors to disburse funds to providers.
  • Stipends for Stage One and Bridge Program providers, who are typically paid by their county department, are going out this week, and all other stipends will follow in the next few weeks. DSS has confirmed all providers should receive their stipends in September. 
  • Providers who serve Stage One or Bridge Program children operated by a county welfare department will receive an EverBridge call/text/email with a link to a W-9 survey which you will need to complete even if done for previous stipend rounds.
  • All providers paid by alternative payment programs or FCCHENs (Networks) in their counties will not have to complete the W-9 form again.
  • If you have direct deposit, some of you may receive your payment as soon as this week, while paper checks will take 2 weeks longer.
  • For more information regarding the stipends, click here and scroll down to Round 3.

$3500 Licensed Provider Stipend :

  • Providers who were licensed on June 25, 2021, will receive this stipend.
  • Follow the link HERE to confirm your information needed for the State to issue your stipend (note: website is in English only now but will be in Spanish in the coming days):
    • First, you’ll see your address, but parts of it will be redacted, or hidden, to protect your information.
    • Second, you’ll enter your tax identification number or social security number and name associated with that number that will be used to verify providers.
    • Third, you’ll be asked to confirm technical W-9 language. Please note that immigration status will not impact your ability to receive this stipend.
    • If you do not have a taxpayer ID or social security number, contact the support line.
    • You’ll be asked to create a password to check on the status of processing your stipend. If you have an email on file with licensing, you’ll also receive an email once your stipend has been mailed.
  • Once you have confirmed your contact information and agreed to W-9 terms, the state’s contractor expects to mail a check within a few days.
  • If you have questions, please contact the Registration Customer Service desk at 1-833-398-1399 starting Saturday, Sept. 11. They will be taking calls Mon-Sun (daily) from 4:00 am-4:00 pm. English and Spanish language options will be available for providers.
  • You will also receive an email, text, and call from the state’s Everbridge system early next week to notify providers of this stipend distribution process as well.
  • Licensed Stipends FAQs can be found here

IMPORTANT!  All providers should receive stipends by the end of September. Contact CCPU provider leaders in your area in October if you should have received your stipend but did not.

Other wins we fought for that are also in effect as part of the COVID agreement include:

  • Waiving family fees and reimbursing providers in full
  • Continuing 16 paid COVID closure days for all subsidized providers for FY 2021-22
  • Reimbursing providers in full based on enrollment, not attendance.
  • Waives signatures for families sheltering in place (until public health declaration ends).
  • Invests $25M in the Child Care Initiative Project (CCIP) to expand child care capacity and address unmet child care needs in geographies and with infants and toddlers.
  • Invests $10.6M to address the mental health needs of providers and families.

Remember, the more we come together through our union, the greater the victories we build. We know this because we’ve made history by taking collective action in large numbers. That’s why we encourage you to continue talking to all of the family child care providers you know about the accomplishments our unity has achieved, and ask them to JOIN OUR UNION!

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.