Sign the petition and demand that California’s leaders end our state’s child care crisis, NOW!

Dear Governor Newsom, President pro Tempore Atkins, and Speaker Rendon –

We, the undersigned providers, parents with children enrolled in child care, and child care allies, urge you to take immediate action to address California’s child care crisis. In partnership with Child Care Providers United (CCPU), which represents over 40,000 providers statewide, the majority of whom are women of color, we are calling on you to help ensure that every child has access to quality early learning and care, and that family child care providers and all early educators receive the pay, respect, and resources they need as essential workers to provide this invaluable service during this critical time.

Child care was already in crisis before the pandemic. Many family child care providers experience persistent financial hardship due to low pay and lack of access to affordable health coverage. Quality child care can also be hard to find or too expensive for working families. All while more than 1.8 million children who are eligible for state-subsidized care fail to receive it and fall through the cracks.

Yet since COVID-19 hit, these problems have only gotten worse. Over 5,200 family child care providers in California have closed their doors in 2020, negatively impacting more than 50,000 children. Providers have to close if a staff member becomes exposed to COVID-19 from a child or parent, and many have gone weeks without pay after contracting COVID-19. The remaining providers also face increased costs for frequent sanitation, additional staff members, supplies for distance learning, and more, estimated to be 75% higher than average. In fact, 22% of providers have missed at least one rent or mortgage payment for their program. This situation is unsustainable, and the lack of robust economic support is pushing them to the brink of collapse.

We know that without COVID-19 relief and permanent economic protections for child care providers, real economic recovery in California will be impossible. 

To address this crisis and prevent further closures, California’s child care providers require bold action and firm leadership. We are urgently asking you to provide adequate reimbursement rates for children participating in distance learning, financially support providers who have to close their doors following potential COVID-19 exposure so they can later reopen, and restore the recent cut to providers’ pay by restarting the State’s policy to cover families’ portion of fees, making up the difference for children who receive subsidies when families keep them home to prevent COVID-19 spread or exposure.

The benefits of high-quality child care are enormous. It is an essential way to close the achievement gap between children of different economic backgrounds, which becomes even more important when California’s public schools are closed. In fact, providers are some of the only in-person educators right now, and are critical components of making distance learning work and combating educational deficits, with no guarantee they’ll be reimbursed. But that’s what family child care providers do — they find solutions to difficult problems and make it possible for working parents to balance their careers with family responsibilities, especially during a pandemic. Family child care providers are essential workers in our fight against COVID-19, and they should be treated as such.

While SB 820 is a good start in that it waives some family fees, gives providers more paid closure days due to COVID-19, and addresses parent signatures when families are staying home, it frankly doesn’t go far enough.

This is why we are urging you to take action and work in partnership with CCPU to address the needs of all child care providers. We must maintain the child care infrastructure that California families desperately need now, and strengthen our system for the future as we emerge from this pandemic. For if California fails to address its child care crisis, we not only risk compromising our response to COVID-19, but we also risk compromising an entire cohort of children who won’t receive the care and attention they need to thrive.

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.