I am an expert in this area. I have been working with US expatriates for 31 years (you are an expat as you are an American living in Italy). Do you realize that under Article 18 of the US-Italy tax treaty your pension is exempt from tax here in the USA? You report it as income on the pension line, then you deduct it on Line 21, other income, using the description "US-Italy Tax Treaty - See Form 8833 attached", then putting the pension amount in as a subtraction (negative). I have several expats retired in Italy that we do this for.
As a US citizen, you should be reporting the foreign bank accounts in two places. First, you need to file a FinCEN 114 by June 30 of each year to comply with the FBAR rules and report the accounts to the US Treasury Dept, Financial Crimes section.
You also have to report your specified foreign assets, such as foreign bank accounts, foreign pension plans, foreign insurance policies, foreign stocks, brokerage accounts, etc.
Here is a link to a table that gives a clearer picture of what you need to report.
If you are not "compliant" then the bank will withhold 30% of the amount. In order to become compliant, you have to file a W-8 with the bank (NOT a Form W-8 BEN! They might try to get you to fill one of these out, but they are for Non-citizens only! It says that right on the top of the Form!).
I hope this answers your questions! If you have any more, please let me know and I will answer.