I sympathize with the general direction of the criticism ("defined benefits pensions are much, much more valuable -- and expensive -- than people typically give them credit for"), but $2 million is strictly superior to a $80k annuity, even if one's assumption is 4% annualized post-inflation returns or, more pessimistically, a 4% safe draw-down rate. Cash doesn't expire when you expire, pensions (mostly) do.
The fair cash value of the pension is closer to $1 million. (Please accept this as a handwavy approximation as I'm on a train -- you can probably find any number of calculators on the Internet which would give you a more exact calculation.)
The fair cash value of the pension is closer to $1 million. (Please accept this as a handwavy approximation as I'm on a train -- you can probably find any number of calculators on the Internet which would give you a more exact calculation.)