Raquel Cinta holds back tears as she talks about her new retirement benefits.
Cinta runs Raquel’s Child Care in McMinnville, where she, an assistant and another teacher care for 16 children who range in age from 9 months to 12 years. She’s been a child care provider for more than 20 years and never thought the work would allow her to plan for retirement.
But Cinta was among the 900 self-employed child care providers recently given about $4,400 in an OregonSaves retirement account, after the American Federation of State, County and Municipal employees union struck a deal with the state to award $5 million in retirement savings to child care providers from American Rescue Plan Act funding.
“I’m so happy. I’m happy for my family,” Cinta said in Spanish. “I’m going to be able to take care of myself.”
All of Oregon’s 2,300 registered and certified child care providers were eligible to receive a chunk of the retirement funds, but slightly fewer than half opted in. About 200 of them are still in line to receive their funds.
AFSCME’s Child Care Providers Together union represents certified and registered child care providers, public affairs manager David Kreisman said. After the union bargained for the retirement benefit, all of the state’s registered and certified providers were invited to create an OregonSaves Roth IRA and become eligible for the benefit, he said.
“They’re really helping some of the most vulnerable communities make sure they can go to work and their kids are well cared for,” Kreisman said. “Prior to the union bargaining this method, they were on their own for retirement.”
Child care workers who put in enough years and report enough taxable earnings qualify for Social Security benefits as well. But their low wages usually translate to small Social Security payments.
Child care providers had months to opt into the program, and Kreisman said that the union mailed letters and sent emails, texted and hosted webinars and in-person clinics from October to December to help child care providers who wanted to sign up.
But some providers were nervous about the tax implications of accepting the free money, union steward Anneliese Sheahan said. The retirement credits are considered taxable income, according to the union website. Many child care providers who received COVID-19 stabilization grants earlier in the pandemic got stuck with huge tax bills from that aid, Sheahan said, and some providers may have been nervous about that happening again. Sheahan said the union would have preferred to set up a self-employment pension program with the state, but that federal deadlines around allocating the ARPA funds made creating IRAs the more feasible option.
Still, Sheahan said that the state and the union “moved a mountain” to set up the new program to contribute retirement funds.
“We knew that it wasn’t going to be perfect the first time,” Sheahan said. “It’s a learning experience.”
Child care providers often feel abandoned, Cinta said. People outside of the industry equate them to babysitters, she said. Cinta is an educator, trained in Mexico, and worked for a government child care program there before starting her own business in the U.S. Cinta’s child care functions like a school, she said. Her kids stick to a schedule of meals and activities, movement and naps. She also has to pass inspections, help remind families that they need to stay current on their child care benefits and risks losing her livelihood if everything isn’t up to snuff at her center.
But Cinta calls child care her “heart’s work.” She loves the kids, who call her “Ama,” mirroring the nickname Cinta’s grandkids use for her.
At 64, Cinta says, she doesn’t plan to retire just yet. Her work is her passion, she says.
“It has its ups and downs, but I like it,” Cinta said, “And now, I have a little bit more satisfaction.”
This story was updated on Feb. 20 to correct which child care providers are represented by Child Care Providers Together union. AFSCME public affairs manager David Kreisman initially provided incorrect information.
Sami Edge covers higher education and politics for The Oregonian. You can reach her at [email protected] or (503) 260-3430.