An actuator is provided with a position sensing system which comprises a permanent magnet, a saddle plate, a sole plate and the magnetically sensitive component. The magnet and the magnetically sensitive component are disposed between the saddle plate and the sole plate which are spaced apart for these purposes. A moveable plunger is arranged to move along an axis relative to a stationary stop member. A first magnetic circuit is provide which comprises the permanent magnet, the saddle plate, the sole plate, the stop member and the moveable plunger. A second magnetic circuit is provided which comprises the magnet, the saddle plate, the sole plate and a magnetically sensitive component such as a Hall effect element. In addition, an adjustment means can be provided within the second magnetic circuit to change the reluctance of that circuit for adjustment purposes. When the plunger is moved away from the stop member, an air gap exists therebetween which provides sufficient reluctance to the first magnetic circuit to permit the permanent magnet to provide a sensible magnetic field at the magnetically sensitive component. When the plunger moves into contact with the stop member, the reluctance of the first magnetic circuit decreases sufficiently to decrease the magnetic field strength of the second magnetic circuit to a magnitude which is detectable by the Hall effect element.