The screenshot that MaryK4 posted above may not be clearly visible on your end, but it is where you indicate KPERS as well as federal retirment so that TurboTax knows how to treat it. You select this as you go through the Kansas interview.
Did you already select this and it still didn't exempt the income, or are you not seeing the screen to make this election? TurboTax will not pick up on the source of the funds automatically, and this screen is what is used to designate the income as free from Kansas state tax.
If you aren't seeing the screen at all to make the selection, try deleting the state return and adding it back to prompt the question to appear. See: How do I delete my state return?
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