TomKro, what size is the collet in your picture?
I had to dig a little, I'm in the process of moving.
My Sheldon uses B&S No. 9 collets. Way back when, I was concerned about a few replacement collets that appeared to sit behind the face of the spindle nose. I was concerned this might add to the possibility of the collets getting stuck.
I rechecked by gripping proper size bar (well, almost - the 3/8 bar was a little shy). Anyway, with almost proper bar size, all the replacement collets sat a little behind the face of the spindle using "medium" tension on the draw bar (small wrench, tight, but not cranked hard).
Checking my one and only Hardinge collet gripping a 3/4 arbor, the collet nose sat proud of the spindle by less than about 3/8 inch, using similar drawbar pressure. That collet was listed as a "9B" and I am not aware of what the B implies.
Here's a couple pics:
I hope this answers your question.
Maybe some of the more experienced members can chime in as to proper collet fit and what's considered proper drawbar tension.
TomKro