A switchgear system includes a switchgear frame and a truck carrying a circuit breaker, which includes a breaker housing, a fixed electrical contact and a movable electrical contact mounted within the breaker housing, an actuator piston connected to the movable electrical contact, and a drive assembly coupled to the actuator piston. A sensor circuit is mounted on the switchgear frame under the truck and aligned with the circuit breaker and configured to acquire displacement data of the actuator piston when in a contact testing position. A controller is coupled to the sensor circuit and configured to receive the displacement data and determine electrical contact erosion within the circuit breaker.