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TENTATIVE AGREEMENT REACHED: Child Care Providers Union Protects Benefits, Wins Stabilization Pay and Ongoing COLAs

For Immediate Release 

August 8, 2025 Contact: Maya Polon, maya@paschalroth.com

SACRAMENTO, CA – Today, members of Child Care Providers United (CCPU) – the union representing more than 60,000 family child care providers in California – announced that after months of negotiations, rallies, marches and vigils, CCPU has reached a three-year tentative contract agreement with the State of California and released the following statement from Max Arias, CCPU Chairperson and Chief Negotiator:

“Today, family child care providers across California celebrate reaching a tentative agreement with the State of California. A largely women-of-color workforce, child care providers know what their work is worth to California; they refused to let the state continue to devalue their work and the care they provide to children night and day. Standing together in their union, providers prevailed over pressure to continue to just accept poverty pay and have their healthcare and retirement benefits taken away or reduced. This agreement provides immediate stabilization pay and continues progress on the true cost of care providers deserve, and it was made possible by thousands who traveled to Sacramento to share their stories more than a dozen times this year.

“We are proud that legislators, who heard providers’ stories of missing mortgage payments and fears of not being able to feed their families, responded by funding a historic cost-of-living adjustment (COLA) in the state budget. At the bargaining table, providers refused to let the state withhold these COLAs and went further to win one-time stabilization payments. This relief will temporarily stabilize providers as the union continues to work with the state to reach agreement on a payment structure that reimburses providers for the true cost of providing care to fully stabilize the workforce.

“When the state threatened to eliminate the life-changing health care benefit that we won in our last contract, providers who survived cancer and received arthritis treatments through the Union’s health care benefits led our fightback. Likewise, when the state proposed to cut our retirement benefit in half, our members also made the case that retirement benefits are critical to attracting new talent and keeping long time providers in the field, and the state listened – restoring health care, retirement, and training benefits won in our previous contract.

“As California faces a difficult budget outlook and is forced to fight back against draconian federal attacks, protecting our union benefits and winning higher pay for providers was essential but not easy. We are proud to have reached a tentative agreement with the state that will ensure working families can continue to access quality, affordable child care for years to come. We demonstrated to all working people across the nation that our solidarity is more powerful than the forces trying to divide us.

“Governor Newsom signed legislation that recognized our union and committed to working with providers to ultimately realize the cost of care payments we’ve long fought for. He came into office as a child care champion and we look forward to continuing to work with him to make investments that realize the full cost of care which would cement his legacy as our state’s first child care champion Governor.”

This tentative agreement was made possible by the tireless work of child care providers who took time away from their families and their businesses to organize, mobilize, and negotiate, and by state legislators who listened to their constituents and prioritized COLAs for providers in the 2025-26 state budget. Providers and legislators will vote in the coming weeks to ratify the agreement.

Key provisions of the tentative agreement: 

  • $37 million ongoing, per year in COLAs
  • $90 million one-time stabilization payments 
  • $80 million ongoing, per-year retirement funding
  • $100 million ongoing, per-year health care funding
  • $15 million ongoing, per-year for training and continuing education
  • Ability to re-negotiate rate increases if the legislature allocates more money in future budgets
  • Significant progress on rate reform structure and a commitment to move to prospective pay
  • Continuing payment by enrollment

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Child Care Providers United brings together 60,000 family child care providers across California and is a partnership of SEIU Local 99, SEIU Local 521 and UDW/AFSCME Local 3930.

Our Perspectives

Access your portal

Step 1

Go to portal site.

Go to www.MyParticipantEdge.com

STEP 2

Click “Create Account.”

step 3

Complete the following fields, using the information provided in the benefits letter you received.

  • User Type: Member
  • Email: Enter your email address and confirm your email
  • First and Last Name: Enter your first and last name
  • SSN/SIN: Enter the last 4 digits of the Retirement Identification Number you received from your benefits letter. Do not enter the last 4 digits of your Social Security number.
  • Date of Birth: Enter your actual date of birth. If this doesn’t work, then enter the temporary date of birth from your benefits letter.
  • Zip Code/Postal Code: Enter the zip code exactly as written on your benefits letter
step 4

Click “Next” and the following screen displays

Enter the password, and three Security Questions and answers, and select the Terms of Use and Privacy Policy checkbox.

step 5

Click Finish, the account is created, and you are returned to the initial screen (see following screen example)

You will also receive an access code which will be sent to the email that you entered when you created your account. Note: Each time you log in from a new computer/device, you must enter a new access code.

step 6

From the initial screen, enter the email address you used to set up your account and password, and click Login

step 7

Enter the access code you received in your email to access the Dashboard screen

If you have any questions, or would like assistance registering your portal, call our CCPU Provider Resource Center at (888) 583-CCPU (2278) or PRC@ccpuca.org.

Info Sessions Recordings:

July 9 CCPU Retirement Fund Info Session

July 18 CCPU Retirement Fund Info Session

Frequently Asked Questions

Find answers to common questions in the FAQ section below.

Are the benefits from the Retirement Plan taxable income to me?

The State contributions to your Retirement Plan account are not taxable to you until you receive a distribution. There may be distributions options to defer those taxes.

When can I sign up for the Retirement Fund and where can I learn more?

Eligible providers are automatically enrolled in the retirement fund. However, the administrator, Zenith American Solutions, will ask eligible providers to update necessary information. It is important to provide this information so that your records are accurate, and to avoid delays accessing your account.



If you believe you are eligible, but have not received this mail, you may contact the CCPU Provider Resource Center for assistance at (888) 583-CCPU (2278) or PRC@ccpuca.org.

Have more questions?

If you have additional questions, you can call the CCPU Provider Resource Center at 888-583-CCPU (2278) from 9am to 5pm Monday-Friday or email at PRC@ccpuca.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 from funding won through the CCPU collective bargaining agreement. The Plan does not accept contributions from you.
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 paid for state subsidized child care for 9 consecutive months at any age (“terminate from service”);
  • You stop all work as a licensed provider paid for state subsidized child care 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?

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?

If you are eligible, the Plan will automatically enroll you based on data received by the State of California. You should immediately update your information with the Plan so it has has all of your current information and you receive credit for your years of licensed work.