we have to assume the distributions from your pension are RMDS. Otherwise it would make no sense to take distributions from your pension which are not required in order to put money in your spouse's IRA. that would in effect be a wash for income tax purpose's. however, if it is an RMD then the rules state if your spouse has earned income, even if you don't, you can make an IRA contribution for her subject to the limitations for that year.
there are other rules. the contribution limit, provided a joint return is filed, the lower earning spouse can consider the other's compensation to the extent it has not been taken into account in making an IRA contribution for the higher earning spouse.
since you are covered by an employer retirement plan, I assume your spouse isn't, the amount available for you to contribute based on your spouse's earned income is subject to phase-out based on modified agi on the joint return.
