It sounds like you were either a part-year resident or nonresident of Arkansas. If either of those is the case, you don't take the pension income off of your Arkansas return. TurboTax is preparing that return correctly.
Part‑year residents and nonresidents of Arkansas compute adjusted gross income (AGI) from all sources in columns A and B of Form AR1000NR, just as if they were full‑year Arkansas residents. They then calculate AGI from Arkansas sources in column C.
Your net Arkansas tax is then prorated by the ratio of your AGI from Arkansas sources to your AGI from all sources on lines 38A through 38D.
