It appears that it does. What Delaware's instructions for the pension line on its return is the following:

Page 6

Line 6 Pension Exclusion

Amounts received as pensions from employers (including pensions of a

deceased taxpayer) may qualify for an exclusion from Delaware taxable

income, subject to the limitations described below.

An early distribution from an IRA or pension fund for emergency

reasons or following a separation from employment does not qualify

for the pension exclusion. If the distribution code listed in Box 7 of

your 1099 R is a 1 (one), or if you were assessed an early withdrawal

penalty on Federal 1040, Schedule 2, Line 8 for the distribution, then

that distribution DOES NOT qualify for the pension exclusion.

You will notice it specifically references pensions of deceased taxpayers as being eligible for the exemption and the only thing that seems to disqualify the IRA distribution from the exemption is if under the federal rules an early distribution penalty would apply to that distribution.

But if you have any uncertainty about it then calling the state revenue department and asking about it is worthwhile. It just costs you time (which might include some considerable wait time depending on how fully staffed they are).