Case Study: Launching a First of Its Kind Retirement Fund
In 2024, Zenith American Solutions (“Zenith”) was chosen to partner with the Board of Trustees of Child Care United (“CCPU”) of California to help establish a new Retirement Fund for California home-based child care providers.
Nationally, this is the first of its kind for these essential workers. This new benefit was secured in the current Collective Bargaining Agreement (CBA) with the State of California through the combined hard work and effective negotiations from SEIU Local 521, SEIU Local 99 and United Domestic Workers/AFSCME Local 3930. Through their efforts, they secured $80 million in annual funding from the State of California for this benefit. The State left it to the Unions to design and administer the Plan.
Needless to say, creating a new benefit and legal Trust is no small feat. However, through the unique collaboration and adaptability that Zenith offers, we worked with the Unions to successfully navigate the challenges involved. The positive impact of this new Fund is already being felt among Fund participants.
Following the implementation of the Retirement Fund, we received heartfelt feedback from a participating provider:
“To tell my grandchildren that I was part of this inaugural group of providers receiving the first-ever retirement plan in our country is a true honor. This is a milestone for all of us, and I am immensely grateful for the efforts of our dedicated retirement committee. I can feel the support surrounding us on this journey. Thank you to everyone involved in making our retirement a reality in this lifetime. I appreciate each and every one of you, even those I may not know personally.”
Team Insights
Nickolette Beaty, CCPU Retirement Benefits Supervisor at Zenith:
"Myself and the entire CCPU team are truly excited to be part of this historic initiative. It’s an honor to contribute to such a significant plan. The providers we’ve had the pleasure of working with have shown genuine appreciation for our efforts, and their collaboration has been incredibly positive and rewarding. We look forward to continuing this partnership and making a meaningful impact together."
Mary Laffey, CCPU Client Services Executive at Zenith:
"I’ve had the pleasure of working on many plan onboardings with Zenith, but this is the first time I’ve worked on starting one from the ground up. The Plan’s Trustees have been just great to work with and are fully committed to see that this is a significant benefit for these hard working child care providers"
Impact and Future Vision
The very existence and future success of this Retirement Fund serves as a testament to the power of Unions, collaboration and dedication. At Zenith, our commitment to help foster retirement security for America’s workforce continues to guide our efforts.
Want to Learn More?
Listen to the Zenith Insights Podcast!
In this episode 5, Nancy Harvey from CCPU joins Steve Selinsky to discuss the history of CCPU's origins and their efforts to become a union, including negotiations with the state aimed at improving benefits and ongoing support for childcare professionals.
