A magnetic system for controlling the operating mode of an overrunning coupling assembly and an overrunning coupling and magnetic control assembly including the system are provided. The system includes a control member mounted for controlled shifting movement and a translator structure supported for travelling along a path between first and second end positions. The structure is coupled to the control member for selective, small displacement, control member movement upon experiencing a net translational force. The translator structure supports a pair of spaced apart magnetic or ferromagnetic targets for movement therewith. A magnetic field sensor is disposed adjacent and stationary with respect to the translator structure between the first and second end positions of travel for sensing magnetic flux to produce an output signal which is based on position of the translator structure. A variable magnetic field is generated in response to travel of the translator structure.