Pa. teachers retirement pension payments sre not taxable in Pa. /why is it being included in state return?

When you go through the PA state return, you will be asked about adjustments to income.  When you come to the questions about retirement income on the state return, you will indicate that it is a teacher's pension and TurboTax will exclude the income from your state return.   The first option under Retirement Adjustments is ''PA school, state or muni employee''.