If she receives a Form 1099R in her name, that portion is reported on her tax return. If she has not received a tax reporting document then the assumption would be there is no taxable income. It's best to contact the administrator for confirmation.
If she does have a Form 1099R then it can be included in her tax return by following the steps here.
You can go directly to the area
to enter the document by following these steps.
1. Sign into your account and
select your current return. (online version)
2. Select My Account on the top right and then select Tools
3. Select Topic Search (see attached image)
4. Search for 1099r and select Go
5. Follow the interview to
enter or review your entry for these benefits.