Enter the W-2 as a W-2. The 1099-R is entered later under Retirement Plans & Social Security. If your dad qualifies to have his retirement counted as earned income (because he's under the earliest normal CalSTRS retirement age, apparently 55), TurboTax will move it to the wage line of his 1040 when you enter that age, as asked in the questions after entering his 1099-R.
Though not clear, it looks like you may be trying to combine your W-2 with your dad's 1099-R. THAT IS A NO-NO! You and your dad MUST file separately, if at all. If he had no withholding on his 1099-R (and W-2 if any), he probably doesn't need to file unless his 1099-R counts as earned income (see above) and qualifies him for EITC (Federal and/or state).
