The reverse lights and the neutral safety are controlled by the same switch, because both are dependent on shifter position.
Here's photos from my '88 K1500. I suspect your '95 is similar. The plastic tang on my switch broke because the internal parts wouldn't slide like they should. The switch "locked up" in a certain position from excess wear. The leverage of the long shifter handle was more than the plastic could take.
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Switch has "ratchet" adjustment. Here it's pushed almost all the way to the left.
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and this is pushed almost all the way to the right. There's an adjustment procedure in the Service Manual, but I had to manually ratchet it over a couple of notches to make it work right--engine starts only in Park and Neutral, backup lights come on only in Reverse. In other words, don't be afraid to fine-tune the thing once installed.
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The additional electrical contact on the new switch may be used on some applications. For my truck, it's not connected.
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Of course, your truck may have faulty wiring or a corroded circuit board. The circuit board at the taillight housing is an epidemic problem.