Warning that Los Angeles is facing insolvency, mayoral candidate and City Councilwoman Jan Perry outlined her plan Thursday for reforming the city's employee pension and benefits system.

"The truth is that we cannot afford to continue to pay our city workforce in its current configuration," Perry said in an address billed as her first major campaign policy speech.

Perry stopped short of opposing a controversial plan by former Mayor Richard Riordan to dramatically cut retirement costs by shifting employees to 401(k)-style retirement accounts, calling it "high risk," but said she would reserve judgment until further analysis was done.

Read more at the LA Times