Well I may disagree! I replaced bearings and seals and after installing the top seal as you guys' indicate (flush to bearing) the top one leaks oil. So I took off the case and looked everything over and put that collar into the seal which butts up against the bearing and noticed that the seal doesn't have much contact to the collar. Now with that seal being installed flush to the housing the collar fits deeper into the seal which would probably really keep the oil in. So I'm going with this install of the seal and see what will happen.