Child Care Providers
 United Contract

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IN IT Together

We All Share in This Momentous Victory.

We made thousands of phone calls, sent thousands of emails, and shared and supported social media posts many times over. Our elected negotiation team went back to Sacramento again and again. Between our actions from a distance and more than 3,000 of us rallying at the state capitol, we made it clear to Governor Newsom that we weren’t backing down. The result of months of organizing and collective power at work is our historic new contract.

Thousands of providers and allies all across our state made it clear that we weren’t backing down.

The Results

We Made Our Voices Heard

Our elected negotiations team is excited to announce that we ratified our new, two-year contract with the State of California. Our contract includes a pathway to implement provider payment based on the actual cost of providing care, a subsidy rate increase per child, $80 million for a historic, first-of-its-kind retirement fund, continued money for healthcare, training and more.

Fair Payment Pathway

A pathway to implement payment based on the actual cost of providing care

Increased Subsidy Rates

A subsidy rate increase per child

Retirement Fund

$80 million per year for a historic first-of-its-kind retirement fund

Funding for CCPU Benefits

Continued funding for CCPU Health Care Reimbursement Fund and CCPU Training Fund

Two-Year Enrollment Payments

A two-year extension to payment by enrollment, not attendance

Contract expires July 1, 2025
Lowered Full-Time Qualification

Lowered hours per week to qualify for full-time reimbursement allowing more kids to qualify for full-time rates, and more!

What Will My Rates be?

The new rates will be based upon your region defined by the state below. Using the form below, you will be able to estimate your new rates.

Rate Increase: beginning January 1, 2024, per-child, per month additional rate amounts shall be as follows:

 

RegionLicensed Family Child Care Providers

License-Exempt

Providers

Central$140 $98
Northern$141 $99
Southern$160 $112
Los Angeles$171 $119
Bay Area$211 $148

Read the Contract

If you have any questions, please contact: info@childcareprovidersunited.org

The Contract
We Need your voice

California Child Care Providers Unite

From rallies in the streets of the capitol to hosting local representatives, we’re looking for ways that enable everyone to participate — because that’s the only way change happens.

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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.