Child Care Providers’ Union Wins Significant Relief To Stabilize Child Care Businesses, Keep Doors Open For Essential Workers And Families

Today, Governor Newsom signed into law a bill that will help keep the doors of family child care centers open to essential workers, support the distance learning needs of children, and allow family child care providers to support their own families given the increasing costs of COVID-19 precautions. Having spent the last year sounding alarms about COVID-19’s devastating impact on child care providers, members and leaders of Child Care Providers United (CCPU) responded to Governor Newsom’s signature on this urgently-needed legislation AB 82:

“This agreement that child care providers fiercely fought to secure is a temporary lifeline for our workforce, which overwhelmingly consists of women of color, and the families we serve, many of whom are supported by essential workers,” said Christine Benevedes, a provider from Tulare County and a member of CCPU’s negotiations team. “It gives providers the confidence to keep our businesses running, knowing we can still survive if a COVID-19 exposure forces a temporary closure.

“With so many of my parents working essential jobs, closures are a constant risk,” said Lucre-ce Lester, a provider from Contra Costa County and a member of CCPU’s negotiations team. “Simultaneously, these parents cannot do their jobs without somewhere safe to send their children. I’m proud child care workers came together to fight for this agreement, so we can continue to provide this vital support for California families.”

“40,000 child care providers spanning the entire state wrote letters, made phone calls, and caravaned to get elected officials’ attention over the last year because our child care system was in crisis, and COVID-19 threatened to break us. We commend Governor Newsom and legislative leaders for hearing and responding to our members’ voices, finally taking action to support these essential workers’ livelihoods, and enabling them to feed their own families. But, as we all know, there’s still a lot more to do to support providers and California’s families. We are hopeful for more progress and look forward to continuing to partner with the State to meet these needs,” said Max Arias, Chairperson of CCPU.

“California’s child care providers have been waiting far too long for basic relief from this devastating pandemic,” said Johanna Puno Hester, Vice Chairperson of CCPU. “From increased access to PPE and cleaning supplies to additional paid closure days, this is a desperately needed step from the state to do what’s right for a workforce made up of women of color making below minimum wage while taking on significant expenses. We look towards our partnership with the state to ensure these critical funds get distributed swiftly to our frontline workers.”

“Following nearly two decades of organizing, this agreement shows the power providers’ voices have when they come together, unified around critical issues. I look forward to the state continuing to partner with all child care providers as they negotiate their first contract, tackling key issues like provider pay and family access to care that have festered for far too long,” said Riko Mendez, Secretary-Treasurer of CCPU.

The full text of the bill is available here.

With this significant victory achieved by our unity, CCPU members will use the streamlined process agreed to with the state to continue addressing the many challenges providers and families still face related to COVID-19, including ensuring providers who are closed can reopen and covering family fees for all families. We will also continue to negotiate our first collective bargaining agreement with the State of California, finally addressing issues like provider compensation and benefits, training and professional development, and other foundational priorities. AB 82 represents a critical first step. We hope to continue to work collaboratively with the State of California to build a 21st-century, high-quality child care system in California that meets every child, parent, and early educator’s needs.

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.