I am retired but I was told I was not considered retired in other states. Please make sense of this?

How old are you? What State are you in? Federal retirement age if recently filed is 70. You can file for SS @ 62 but not be considered "technically" retired.

Retirement is not a State function or condition

That doesn't make sense, you should ask whoever told you that to explain what they mean.

It is possible that they mean that retirement income (pension) are not taxed in some states, but a pension is subject to income tax in other states.  Certain states exempt pensions from state income tax.  Each state has its own state tax laws.  

They probably want you to apply for benefits in your home state, where your work history is recorded.

Presumably you possess far more information about that than we could possibly have. Make sense of it yourself.

Retired means you no longer work. So how could that be different in another state?

Who told you that you weren't retired?  If you didn't fill out the paperwork then your company might not consider you officially retired. The government doesn't approve your 'retirement'.

That is odd. Many people move to another state where there are different tax laws to make the most of their retirement income. This IS the United States, where you always have the freedom to move to a different state where your retirement income is not taxed, or if you can live in a cheaper house or apartment to have more weekly or monthly money left over from cheaper rent to afford better living expenses. Talk to an actual financial counselor about freedom of options here in the US. And good luck to you!