SAN FRANCISCO - It has all the makings of California's next multibillion-dollar taxpayer headache.

New accounting rules require public agencies to disclose the future cost of health care and other benefits _ such as dental, vision and life insurance _ promised to retirees alongside traditional pensions.

In California, half the state's employees have reached retirement age or will become eligible to retire within a decade. And the death of a retiree doesn't always reduce expenses because many agencies continue providing benefits to survivors.

According to the California Department of Personnel Administration, a fully vested state employee who lives for 20 years after retirement could receive nearly $500,000 in benefits outside their pension.

All government agencies that provide health care and other non-pension benefits to retired employees are affected by the new rules, from the largest municipality to the smallest cemetery district. Here's a look at how it will impact different levels of government:

Read More