First, make sure that your state of residence in Personal Info is Michigan.
Then go back to the 1099-R interview and enter the numbers. In the screens following, you should be asked what the source of your pension is. This is how TurboTax can know how to deal with the pension on the state return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"