The removal of the tail housing is very similar to the process used on the R-10 type housings. The lockout shaft must be pulled out on all BW overdrive units but there are some subtle differences. Generally, if the entire transmission was made by BW (ie T-86 and T-85) the lockout shaft can be pulled completely out after knocking out the slender tapered pin that secures it.
The housing is released by removing the bolts that hold it to the overdrive adapter casting and gearbox. Leave the single bolt (or stud and nut) that holds the adapter to the gearbox. The exception to this would be the later T-85’s from the late 60’s and 1970’s which used four bolts to pass through the overdrive adapter into the gearbox….you have to remove all four bolts and try to leave the adapter inplace next to the main gearbox. Otherwise, it will have a single bolt to hold the Od adapter in place….do not remove this bolt.
Remove the round expansion plug on the top of the tail housing ( see my note above in my previous post). Spread the internal lock ring with the appropriate lock ring pliers and use a heavy dead blow hammer (soft head) to tap on the output shaft. This will move the snap ring away from the groove in the rear ball bearing enough to then let you pull the rear housing off. If you can keep the output shaft in place, you can slide the housing off. It’s pretty easy to then replace the rear bushing and rear oil seal.