A report released by the Chinese Academy of Social Sciences on April 15, predicted that the pension funds collected in 2019 will not cover expenses of the same year. The shortfall is appearing much earlier than expected. This is based on China’s preferred payment rate of 16% of a company's total expenses on staff salaries, not including government subsidies. It said when subsidies are taken into consideration, the report shows an annual shortfall would begin in 2028, when a system debt as large as 118.1 billion yuan ($17.58 billion) is expected. The shortfall could soar up to 11.3 trillion yuan in 2050.