If you look at the Taxable Income portion of the instructions to form PA-41 (page 6) there is mention of Income in Respect of a Decedent (IRD), that should not be reported on form PA-41.
IRD is income associated with compensation that was not reported on a tax return during the lifetime of the deceased. It is clear that wages, a final paycheck for instance, would not be reported on form PA-41, so that may also extend to a pension distribution.
Here is an interesting article on this that you may find helpful:
https://resources.evans-legal.com/?p=4954
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
