An electric drive for a transmission having a housing, a pump drive, and a primary sump configured to hold oil and operatively connected to a vehicle engine. The electric drive includes an oil-cooled electric generator electrically connected to an oil-cooled electric motor by an inverter. The electric generator includes a generator oil output operatively connected to and configured to deliver a flow of oil to a secondary sump located in the housing. The electric motor includes a motor oil output operatively connected to and configured to deliver a flow to the secondary sump. The secondary sump is separate from the primary sump, wherein the oil from the secondary sump is pumped back into the lubrication circuit of the transmission. The secondary sump includes a feature to allow overflow to drain to the primary sump.