In a traditional fuel injected 4-cycle engine, the ignition and injection events of each individual cylinder take place every 720 degrees (2 revolutions) at the crank but every 360 degrees (1 revolution) at the camshaft. On older vehicles, the ignition distributor was geared to turn at camshaft speed so it could be used to identify the correct stroke for the ignition event.
If a vehicle has the early Distributorless Ignition System (DIS) system, it needs a Camshaft Position Sensor (CMP) or a Cylinder Identification Sensor (CID) so it can tell the difference between the intake/compression revolution and the power/exhaust revolution. Half of the plugs fire in the first revolution and the other half in the second revolution.
The so-called Electronic Distributorless Ignition System (EDIS) does not use the cam position sensor to distinguish the first revolution from the second. It doesn't need to know. Instead, it uses double ended coils within a coil pack to fire all
of the plugs during every revolution. The spark events occur in three pairs during each 360 crank degrees. For each pair of cylinders approaching TDC, one spark plug is used to ignite the mixture on compression in one cylinder while the other plug's spark is "wasted" on the exhaust stroke of the other cylinder.
Vehicles with EDIS and Sequential Electronic Fuel Injection still need to have some variation of the CMP sensor. Although it is not needed for spark scheduling, it is necessary to synch the PCM timing for the fuel injection events. Since it is important for injectors to fire on closed intake valves for emissions reasons, the PCM needs to know where the crank is within its rotation [Crank Position Sensor(CKP)] and whether it is in the first or second revolution of the 4-cycle sequence [Camshaft Position Sensor(CMP)].
I'm reasonably sure that your 95 Ranger has a 104-pin EEC-V module with SEFI and PCM-controlled EDIS. So, to answer one of your questions, the CMP is there to synch the fuel injector timing.
The gear driven CMP sensors that I have seen on 3.0L, 4.0L and 4.2L Ford OHV V-6s from the 90's fit into the former distributor position. They have a removable sensor on top of the synchronizer body (held by two screws). A special timing tool is used to align the synchronizer shaft to the correct gear tooth position on the camshaft. This is a picture of a V8 CMP but the V6 part looks similar:
The timing tool looks something like this:
If you simply remove the type of sensor in the picture without disturbing the synchronizer assembly (lower body and gear drive), it does not need to be retimed. The timing is the geared relationship between the camshaft and the shaft in the synchronizer housing which turns the windowed reluctor for the CMP Hall Effect sensor.