bsteiner wrote:If one has enough other assets to live on and to pay the tax on the conversion, and if the lump sum can be rolled over into an IRA, there could be additional value in taking the lump sum, rolling it over into an IRA, and converting it to a Roth (perhaps spreading the conversion over a number of years to avoid bunching the income into a high bracket in one year).
I would lean that way myself as well, bsteiner. The OP seems to be more comfortable with a pension or annuity, whereas I'd probably like to wait till I'm 75 or so to annuitize. There could be a sequence of returns risk with the latter which the OP may not wish to take.
enret wrote: I am leaning to take pension, for safety.
That being the case it makes sense to keep the pension, and work around improving the tax placement of the other funds. Taking the pension is probably going to be the default position in most cases unless there's solid evidence to suggest otherwise. While it may not always be the optimum choice, it is generally the safe choice (assuming the pension falls within PBGC guidelines). The OP hasn't shared with us what anticipated retirement expenses might be, longevity expectations, or if they wish to leave a legacy. Those factors could also change the situation.
(Edited for clarity)