My spouse is older, and Turbotax is correctly displaying her age. She falls into the dates specified, though Turbotax is not using line 26 (Tier 3) and instead is calculating and using line 27 (which I don't think it should).
Good news. If we assume your spouse did not retire in 2013, and TurboTax is correct by not checking either box G or H on line 24. By completing Worksheet 2 in the instructions the amount on line 11, would be $14,007 which is significantly less than the pension allowed on line 27. For this reason TurboTax used the most advantageous method and amount for your tax return.
Per Schedule 1 instructions for line 26:
If the older of you or your spouse (if filing a joint return) was born during the period January 1, 1953 through January 1, 1957, and reached the age of 67 on or before December 31, 2023, you may be eligible to deduct the larger of either: your Michigan Standard Deduction against all income types, or your retirement and pension subtraction. You are considered 67 the day before your 67th birthday. After completing the worksheet it is clear the best option was to complete line 27. The token was very helpful (see the other post).