no it's not the neutral safety switch, it's just called a magnet, item # 5 in the link below.
What I did for now was just unpluged it, but now the trans is stuck in limp mode
1986 328is (M20 Stroker)
1986 535i (5sp all original)
1990 325iX (Mint 5sp all original)
1989 325iX (Winter auto X car
2001 740i (Supercharged)
2004 X5 3.0i (The DD)