A clutch assembly having a first clutch member, a second clutch member axially slidable in a first axial direction to engage the first clutch member and in a second axial direction to disengage from the first clutch member, a spring biasing the second clutch member in one of the axial directions, a piston actuatable to move the second clutch member in the other of the axial directions, thereby overcoming a biasing force of the spring, and a latching device to selectively lock the piston in at least one of the first axial direction and second axial direction. The latching device includes a selectively retractable locking pin. The piston has an external surface defining a slot to receive the locking pin, thereby locking the piston in the first position or the second position. A method of operating the clutch assembly is provided.