The present invention is directed toward a shift actuator assembly that includes a housing having a retaining mechanism. A holding pawl is biased into engagement with the retaining mechanism. A solenoid releasably engages the pawl when the shift shaft is disposed in its first position such that once the solenoid disengages the pawl, the cam surfaces on the retaining mechanism cooperate with the holding surfaces on the pawl to drive the pawl out of engagement with the retaining mechanism thereby releasing the biasing force of the biasing mechanism to drive the housing and the shift fork axially on the shift shaft between engaged and disengaged positions with respect to the associated gear set.