The pump "switch" I think you are referring to is a gearshifter. It disengages and engages. Was put there to reduce load on the engine when hydraulics weren't needed also to help with cold weather starts.
If the hydraulics still work with shifter on and no bad noises you are good to go. I have shifted it in with the engine running on my 60.
There is also a PTO disengage lever that cuts it off to the right of the gear shift quadrant. The engine absolutely has to be off to kick this one in gear and there is a noticeable difference in load with that tied in not so much with the hydraulics.
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