A lubrication and hydraulic actuation system for a transfer case (120) includes a pump (220), a pump sump (210) formed in the transfer case (120), and having an opening (430) in communication with an interior of the transfer case (120), and a fluid retention element (510, 710). The fluid retention element (510, 710) is disposed in the opening (430) of the pump sump (210) and has at least one baffle structure (550) to allow fluids to enter the pump sump (210) through the fluid retention element (510, 710) and restrain fluids from exiting the pump sump (210) through the fluid retention element (510, 710).