I recall you showed in another thread slots in the outer cylinder (collet), so this is one leg with a slot on either side, but the teeth form a full ring. 

When you say you want to create tension, do you mean that there is radial interference when the teeth are nested peak-to-valley?

Is it frictional contact elements that are being killed in Step 1?  If so, why is that necessary?

How do you know that the collet teeth will break off? What if the finger of material simply flexes up so the inner ring can get to the peak-to-peak position before sliding down the back side of the tooth?