It's common for an annuity to fund a frozen pension, so think of the annuity as equivalent to a pension. While buying an one off annuity usually has perceived high commission fees, that might not be the case with a group trying to just get out from under administering a pension for the next 45 years. I actually think $220 a month for every month until the second one of you dies is not such a bad thing, particularly if you are younger. You probably won't see another pension in your husbands working career while you most likely will see multiple $50,000 bumps, via matches or bonuses etc.
The money in an annuity, even non cola, is off of the "risk table" so factor that into your decision. We kept our frozen pensions because they were not big enough in lump sum to really move the needle in our investments, but allow us to play a little more aggressively with what we do have. I would request a "Summary of Retirement Benefits Statement" for cashing in the annuity as we were presented with 6 different options for claiming our benefits, several of which we didn't even know about until we asked.