This may be perfectly correct.
The administrator withheld tax from your distribution, but the administrator has no idea how much tax you are going to owe, so they tend to withhold standard amounts like 10% or 20% unless you tell them differently.
So the amount of tax withheld may be far less than your income from the pension calls for.
Also, if you are on Social Security, then the percentage of Social Security that is subject to taxation is dependent on how much other income you have. It is quite common for retirees to be surprised by how much their tax goes up when they add a 1099-R, because not only do they owe tax on the 1099-R distribution amount, but also on a higher percentage of their Social Security.
The "do something else" is a bit counter-intuitive but it lets TurboTax peel off the actions that don't get taxed one by one.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
