Child Care Providers Make History: Women Of Color-led Union Wins Agreement With State To Raise Provider Pay And Increase Access To Child Care For California Families

Child Care Providers United (CCPU), California’s union representing 40,000 family child care providers, announced today a history-making first contract with the State of California that includes significant rate increases for the workforce providing early learning and expands access to care for working parents. The victory was led by the Black and Brown women who serve as the backbone of California’s care infrastructure and economy and comes after more than a year of intense action: thousands of phone calls to legislators and the Governor; car caravans and protests outside of state offices; and day-long trips to the state Capitol to fight for this historic agreement.

“I couldn’t be more proud to be a second generation child care provider and to win this long fight for better rates and dignity for my union siblings and providers like my mother, who helped me see that by joining our voices together collectively, we could create a brighter future for both California’s child care providers and young learners. I saw my mother’s dream realized as I served on CCPU’s negotiations team, sitting down with the state to make clear the investments needed to rebuild California’s dwindling child care workforce and to make quality early learning opportunities more accessible to all California families. Through our two COVID-19 agreements and now this final collective bargaining agreement, I am grateful for the work done by the legislature to champion child care investments and to the Governor who finally sat down and heard our voices,” said Miren Algorri, a San Diego child care provider.

“As CCPU’s Chairperson and Chief Negotiator, I want to commend the sacrifice of child care providers who hired aides and took time out of their already hectic workdays to sit down with the state day after day over the past year to fight for the future of child care in California. The work providers put in at the bargaining table will positively impact the lives of California’s children for decades to come and reinvigorate a workforce that has declined by almost half in the last thirteen years. I want to thank legislative leaders who stood by our side and the parents and children who joined the hundreds of providers all over the state in calling on Governor Newsom to reach the place we find ourselves at today. And finally, I want to thank Governor Newsom for hearing providers’ voices and sitting down with us to reach this final agreement,” said Max Arias, CCPU Chairperson and Chief Negotiator.

The collective bargaining agreement marks a new chapter in providers’ decades-long fight for fair pay and recognition for their pivotal role in early brain development, closing opportunity gaps faced by children of color, and leveling the playing field for working women. Their historic first contract comes after providers endured devastating blows to their business during the COVID-19 pandemic, forced to close for weeks when a child in their care was exposed to the virus, taking on significant costs for cleaning and equipment to support distance learning, and seeing revenue plummet during stay-at-home orders. Thousands of child care businesses closed during the pandemic.

The agreement will go before providers for a ratification vote in the coming weeks. The agreement includes:

  • The first increase in pay providers have seen in five years that will amount to a fair rates increase for all providers

  • New funding for additional provider training

  • New funding to allow more providers to become licensed

  • Many other long awaited supports for providers throughout the state

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.