Open Letter to Gov. Gavin Newsom – Raise Our Rates

Dear Governor Newsom:

We, the CCPU Negotiations Team members, who are mostly comprised of Black and Brown women, are writing to you today in crisis. As California reopens this week and you declare victory over COVID-19, too many women still aren’t going back to work, and thousands of family child care providers remain closed.

We are grateful to see the investment and support for early education proposed by you and the state legislature, recognizing how vital child care is to our economy and well-being. But as we negotiate our first collective bargaining agreement, we need to see action now at the bargaining table. If there’s enough money for 4-and 5-year-olds, there’s enough money for 0-3-year-olds.

Your administration’s current proposals do not address the fundamental economic needs to keep providers’ doors open or address the systemic racism that has kept providers’ pay so low for decades. It will not guarantee sufficient child care capacity for families and does not account for our state’s significant resources nor the decades-long earning inequity we women of color have faced. You, Governor Newsom, can partner with us to fix this now

Child care providers, parents, legislators, and our allies agree: provider pay must increase to match the critical work we do in serving working families, allowing us to make ends meet and maintain our businesses.

So, Governor Newsom, if we want California’s small businesses to reopen fully, what about OUR small businesses?

Do we not deserve to support our families and be compensated like the essential workers we are?

In September 2019, you said this when you signed the bill granting us collective bargaining rights: “Child care providers help our economy by allowing working families and parents to report to work. Creating quality jobs for the child care workforce makes economic and common sense. These workers care for our kids – we need to take care of them.”

That was less than two years ago — what’s changed since then? Especially as family child care providers proved even more vital to our society during the pandemic by allowing health care and other essential workers to do their jobs and ensuring children could learn while schools were physically closed.

So, Governor Newsom, if you genuinely believe what you said in 2019, you will work with us at the bargaining table to raise our rates. Higher pay will help us stay open, grow our industry, and right the historical inequities that have kept our pay far below minimum wage for far too long.

Let’s work together to ensure all California working families have access to high-quality, affordable child care.

Sincerely,

The Child Care Providers United Negotiations Team

Rahmo Abdi – San Diego
Max Arias – Chief Negotiator
Shaunte Brown – San Diego
Keenan Davis – Los Angeles
Guillermina Garduno – Imperial
Sylvia Hernandez – Los Angeles
Lucrece Lester – Contra Costa
Charlotte Neal – Sacramento
Rasiene Reece – San Bernardino
Claudia Valladares – Imperial
Verlinda Walker – Los Angeles
Miren Algorri – San Diego
Kim Bailey – Los Angeles
Rosa Carreno – Santa Clara
Justine Flores – Los Angeles
Gabriela Guerrero – Imperial
Saul Hurtado – Los Angeles
Yessika Magdaleno – Orange
Annette Nicholson – San Joaquin
Zoila Toma – Los Angeles
Owen Velez – San Francisco
Claudia Alvarado – San Benito
Christine Benevedes – Tulare
Deborah Corley – Kern
Celeste Gatewood Galeno – Tulare
Nancy Harvey – Alameda
Jackie Jackson – Los Angeles
Patricia Moran – Santa Clara
Deanna Robles – Los Angeles
Horace Turner – Stanislaus
Georgina Villegas – Imperial

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.