If you have indicated in the Personal Info or My Info section that you are a full-time or part-time Oregon resident, then when you enter the 1099-R for that pension income, two or three screens later, you will see a screen headed "Where is this distribution from?"
When you look closely, you will see several references to Oregon. This screen is the state of Oregon (yes, you are still on the federal return) asking the source of the income. "Federal government retirement benefits" is one of the choices.
Your answer here will be carried to the state return.
Later in the Oregon interview, you may be asked to confirm this exclusion or to enter the amount to be excluded (different state interviews do it differently).
Yes
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