After some thought I decided the pin should be replaced with a longer one too see if that didn't solve the problem. The pin is almost exactly a 5/32 inch diameter so the hunt for an appropriate sized hardened steel rod was on. A trip to Home Depot yielded a solution. A 5/32 in. drill bit. Since I'm working on a Porsche, so only a German drill bit would do, and Bosch had just what I needed. It had the right length so that it could be cut into a nice substitute.
The bit was cut and filed to an appropriate length, which turned out to be about 7mm longer than the stock pin.
The pin was reinserted into the transmission, checked for proper length, and tested to make sure reverse was easily engaged.
Works like a charm!
Thanks for all the help and advice!