A steadily increasing number of UAW members are taking advantage of a chance to sock away extra money for retirement in a 401(k) account.

Ten years ago less than 28 percent of workers at GM--hourly and salaried--participated in GM’s Personal Savings Plan. But last year over 52 percent were contributing. At Ford, over 55 percent participate, and at DaimlerChrysler, so do 46 percent of the hourly workers.

It’s no wonder. These tax-deferred accounts reduce your current tax bill while you build a golden nest egg for the future.

If you’re in a 28 percent tax bracket and put $5,000 into your 401(k), your taxes will be reduced by $1,400. You’ll have a $5,000 nest egg, but it’ll only cost you $3,600.

When you spend that money in retirement, you’ll have to pay taxes. But by then, you’ll probably be in a lower tax bracket.

Though it makes sense to participate in a 401(k) plan when they’re available, the UAW has never bought the notion that these plans are preferable to the defined benefit pension plans we’ve long negotiated that guarantee UAW members a certain monthly pension as long as they live.

Not only do these plans offer the most flexibility in providing post-retirement income increases, good survivor income and disability protection, and meaningful early retirement options, they also put the investment risk where it belongs; on the employer rather than the worker or retiree. In addition 401(k)s aren’t insured by an agency of the federal government.

However, when 401(k)s exist, UAW negotiators actively work to improve them.

In the last round of auto negotiations, the UAW added index funds with low internal fees to the DaimlerChrysler plan, laid the ground work for lowering stock investment costs, and negotiated account information through the Internet.

With GM and Delphi, the UAW negotiated 21 new investment fund options including two socially oriented funds. UAW negotiators at Ford also won many improvements including two social investment options and new rights for surviving spouse to maintain accounts.