Military retirement pay is fully taxable by California if you are a California resident.
Your state of residence while you were still on active duty is your state of residence at the time you entered the service, unless you officially changed it during your term of service.
Once you leave the military, your state of residence is whatever state you are making your permanent home (your "domicile").
In TurboTax, your State of Residence is your domicile state as of 12/31. If your "active duty" state was a different state, in the Personal Info section check the line that you lived in another state in 2016.