Couple of things to unpack.
A) 167$/month at 40? or 167$ month at 60?
B) If you are planning to use the money for the downpayment, indeed it's best to put in RRSP, then use with the First time home buyer plan
C) the amount would be 21,000$ X 1.07 ^12 = 47,296 - Which offers 1891$ yearly (157$/month) according to the 4% rule. That said, if the pension doesn't offer the amount until 60, your amount would then be 21,000$ X 1.07^37 = 183,020, or 610$ / month
---That's assuming it's all taxed at 30%.
**** it's 1.07 exponential the number of years, not multiplied.
D) Is it all taxable, or is there a locked-in portion, and finally, do you have the RRSP space to actually transfer it into the RRSP?
E) They tax you 30% as an estimate, the actual amount will be different at tax time, you will either be refunded, or pay more in most cases. It's unlikely to be exactly 30%.
So it's pretty clear that with the numbers you are looking at, it's way more useful now, in transfer value, than later as a guaranteed pension.
You can PM me if you have details you don't want to share on the forum and want more info.