Your 401(k) Retirement Savings Plan

Transcription

1 Your 401(k) Retirement Savings Plan As of January 1, 2013 This summary plan description provides an overview of the 401(k) Plan s main features, so please read it carefully. We want you to understand the 401(k) Plan and how it works. This is your Summary Plan Description (SPD) for the Tenet Healthcare Corporation 401(k) Retirement Savings Plan (the 401(k) Plan ) which describes the provisions of the 401(k) Plan in effect as of January 1, Prior to January 1, 2003, Tenet Healthcare Corporation ( Tenet ) sponsored two similar 401(k) plans: the Tenet 401(k) Retirement Savings Plan (the A-Tenet Plan ) and the Tenet Healthcare Corporation Retirement Savings Plan (the N-Tenet Plan ). Effective January 1, 2003, the A-Tenet Plan was merged into the N-Tenet Plan, with the N-Tenet Plan being the surviving Plan now known as the Tenet 401(k) Plan. There are official Plan and Trust Agreement documents that state the provisions of the 401(k) Plan and the Trust Fund created under the 401(k) Plan. A copy of each of these documents is available for your examination at the office of the Plan Administrator during regular business hours. You may also obtain a copy of these documents by submitting a written request to the Plan Administrator. If there is any inconsistency between this Summary and the plan document, the plan document will determine your benefits. When used in this summary plan description, the term company means Tenet Healthcare Corporation and employer means the company and any related entity that is a participating employer in the 401(k) Plan. You may obtain a complete list of the employers who have adopted the 401(k) Plan by submitting a written request to the Plan Administrator. This list is available for examination by participants and beneficiaries at the office of the Plan Administrator and certain other locations. Likewise, certain labor organizations ( Unions ) have negotiated benefits under the 401(k) Plan with respect to employees covered by a collective bargaining agreement ( CBA ) between the Union and Employer. A complete list of Unions that have adopted the 401(k) Plan may be obtained upon written request to the Plan Administrator and is available for examination by participants and beneficiaries at the office of the Plan Administrator and certain other locations. 1

2 How the 401(k) Plan Works Tenet s 401(k) Plan makes saving for retirement easy! You may save a percentage of your eligible compensation on a before-tax or after-tax basis or a combination of both up to Plan limits. Your contributions to the 401(k) Plan are made through automatic payroll deductions. Participating in the 401(k) Plan is entirely voluntary. See What s Included in Compensation for pay types that are considered eligible compensation under the 401(k) Plan. You may also make Rollover Contributions that is, you may roll over money from another tax-qualified retirement plan into the Tenet 401(k) Plan. Tenet, in its discretion, may decide to match a portion of the Before-Tax Contributions you make during the year. Effective January 1, 2009, the company decided to make Employer Matching Contributions that match 50% of your contributions up to the first 3% of eligible compensation that you contribute, until further notice. This amount of Employer Matching Contributions can be increased or decreased at any time for future contributions, upon notice to employees. The Employer Matching Contribution is made after the end of the calendar year, based on your contributions for the calendar year. You must meet certain requirements to be eligible for an Employer Matching Contribution. The 401(k) Plan provides over 30 extended choice and six Target Date investment options from which to choose. You may also establish a brokerage account for your 401(k) Plan account that allows you to invest in thousands of mutual funds, stock (except Tenet common stock) and securities. You have access to your account through the 401(k) Plan s loan provision, and, under certain conditions, you may withdraw a portion of your Accounts while you re still working for Tenet. When you leave Tenet, you may receive your entire benefit or elect a Rollover Distribution to another employer s qualified plan or to an IRA, or you may leave your money in the 401(k) Plan under certain conditions. Eligibility Who Can Participate All employees, regardless of status, are eligible to participate in the Tenet 401(k) Plan on their 91st day of employment. There s no requirement regarding minimum Hours of Service. You re eligible to participate if you are a full-time, part-time or per-diem employee. You re not eligible to participate in the Plan if you are: A leased employee or independent contractor (even if you are determined to be a common-law employee of Tenet) provided that leased employees or independent contractors who perform services for Tenet in connection with a business transaction

3 How thplan Works Eli g ibilit y such as an acquisition of a facility, a purchase of assets or an outsourcing agreement may participate in the 401(k) Plan if the business transaction documents so provide; Covered by a CBA that does not provide for participation in the 401(k) Plan; A non-resident alien with no U.S. source income from Tenet; or Employed by a facility that has entered into a management services agreement or leasing agreement with another entity and are eligible to participate in that entity s 401(k) plan. In addition, if you are employed in a job classification covered by a CBA, the terms of the CBA may modify your rights under the 401(k) Plan. Similarly, the rights of certain employees could be modified by a resolution or agreement of their Employer. Any such modification of terms will be set forth in the text of this SPD. As of the effective date of this SPD, the majority of modifications to the terms of the 401(k) Plan have been due to the terms of a CBA. Eligibility to Make and Receive Contributions Generally, you re eligible to (i) make Before-Tax and After-Tax Contributions (and Catch- Up Contributions if you satisfy the conditions for such contributions) to the 401(k) Plan and (ii) receive Employer Matching Contributions, Discretionary Match/Profit Sharing Contributions (if any) and RMBA Contributions (if eligible) under the 401(k) Plan on your 91st day of employment (i.e., the day after you complete a 90-day Period of Service) regardless of your status. Verifying Your Contributions You should verify your Before-Tax, After-Tax and Catch-Up Contribution elections when you receive confirmation of Plan enrollment to make sure they are correct. If your contribution elections were not correctly implemented in payroll, you must advise the Plan Administrator within 45 days after receipt of your 401(k) Plan quarterly statement in order for the error to be corrected retroactively. Otherwise, corrections will be applied only to future contributions. Online statements are available as soon as administratively possible after March 31, June 30, September 30 and December 31. You will receive notification when each quarterly statement is posted. How to Enroll Just log on to Fidelity NetBenefits at or call Fidelity at You can use Fidelity s automated services available virtually 24 hours a day, 7 days a week or speak with a service representative, available on business days from 8:30 a.m. to midnight ET (7:30 a.m. to 11 p.m. CT, 6:30 a.m. to 10 p.m. MT and 5:30 a.m. to 9 p.m. PT). Naming Beneficiaries It s important to name one or more beneficiaries for your 401(k) Plan. These are the people you designate to inherit the money in your account.

4 Naming or updating your beneficiaries is a straightforward, online process that takes only a few minutes. Just log on to NetBenefits at click Your Profile, then click the Beneficiaries link in the About You section. Enter who you want designated as your beneficiary(ies). If your beneficiary designation is already on file, you can review the information to be sure it is correct and update your choices as needed. If You re Rehired by Tenet If you leave Tenet and are later rehired by the company, your eligibility to participate in the 401(k) Plan depends on your service prior to your termination and whether you had an Eligibility Break-in-Service, according to the chart below. Have You Completed a 90- day Period of Service*? Have You Had an Eligibility Break-In- Service (Haven t Worked for Tenet at Least One Hour in a Year**)? What Happens When You Return Yes Yes or No You will be credited with your prior service and be eligible to re-enter or enroll in the 401(k) Plan as soon as administratively practicable. No No You ll be credited with your prior service and your period of absence at the time of your termination. You ll become eligible to participate in the 401(k) Plan when the total of your prior service, your period of absence and your service after your rehire date equals 91 days. No Yes You won t be credited with any prior service or your period of absence. You ll be eligible to participate in the 401(k) Plan after you complete a 90-day Period of Service (i.e., on your 91 st day of employment) following your date of rehire. * A Period of Service begins on your first day of employment with Tenet and ends on the date you separate from service. For this purpose, the date you separate from service will be the date you resign, are discharged, die or retire. ** You will incur an Eligibility Break-in-Service if you do not complete at least one Hour of Service during a 12-month period. Special rules apply in determining whether an Eligibility Break-in-Service has occurred in cases of maternity and paternity leaves. Please see the Plan Administrator for more details.

5 Contributions to the 401(k) Plan When Contributions Begin You may enroll in the 401(k) Plan, along with other benefits, as early as your 31st day of employment. However, your 401(k) deductions will begin one to two pay periods after you reach 91 days of employment with Tenet. Also, if you are eligible and have enrolled, any company matching contributions will be calculated based on your Before-Tax Contributions. See Company Contributions for information on when the Employer Matching Contributions, if any, are contributed. Types of Contributions The chart below shows what types of contributions can be made to the 401(k) Plan: Employee Contributions Refer to the Employee Contributions section for details Before-Tax Contributions After-Tax Contributions Catch-Up Contributions Rollover Contributions Prior Plan Contributions Employer Matching Contributions Discretionary Match/Profit Sharing Contributions QNECs or QMACs RMBA Contributions Contributions you make through payroll deductions before taxes are withheld Contributions you make through payroll deductions after taxes are withheld Additional Before-Tax Contributions you may make through payroll deductions if you re at least age 50 and are eligible to make Catch-Up Contributions Account balances transferred to the Tenet plan from your previous employer s 401(k) or 403(b) plans The value of any account you may have had with a prior plan that merged into this plan, such as OrNda HealthCorp Savings and Investment Plan Contributions Tenet may make, in its discretion, based on the amount you contribute on a before-tax basis (a fixed formula may apply to certain CBA employees, as discussed below) Contributions Tenet may make at its discretion, sometimes based on profits of the company Contributions Tenet may make to satisfy certain legal requirements Annual retirement medical benefit account contribution Tenet makes for employees in California in a job classification covered by a CBA

6 Employee Contributions Before-Tax Contributions You can contribute from 1% to 75% of pay, in whole or partial percentages, on a before-tax basis. Your Before-Tax Contributions are limited by the IRS annual deferral limit, which is set each year. The annual deferral limit is $17,500 for If you are age 50 or older during the year, you may be eligible to make Catch-Up Contributions of an additional $5,500, bringing your annual deferral limit to $23,000 for When choosing deferral elections for Before-Tax Contributions, After-Tax Contributions and/or Catch-Up Contributions, you will need to consider your required tax withholdings. It may not be possible to achieve deferral amounts of up to 75% after required tax withholdings and other payroll deductions are applied. Therefore, Tenet may have to adjust deferral amounts to accommodate required withholdings. When you make Before-Tax Contributions to the 401(k) Plan, your contributions are deducted before federal taxes are taken out. Your current taxable income is reduced and that means you pay less in current taxes! Plus, earnings on your Before-Tax Contributions are not taxed until you withdraw those contributions from the 401(k) Plan. You do, however, pay Social Security taxes on your Before-Tax Contributions. Your Before-Tax Contributions are automatically deducted from each paycheck. See Annual Limits on Contributions and What s Included in Compensation for details on contributions and what components make up compensation under the 401(k) Plan. Because 401(k) contributions are deducted on a before-tax basis, contributing helps reduce your taxable income and makes saving very cost effective. For example, if you earn $2,000 a week and pay 20% in Federal taxes ($400) and have no other deductions, your take-home pay would be $1,600. Now, if you contribute to your 401(k) at 3%, or $60 each pay period, your taxable income is reduced by $60, and your Federal taxes are now $388 instead of $400. So, while you are contributing $60 to your 401(k), your take-home pay is reduced by just $48. See the chart below. Participating in 401(k) Not participating in 401(k) Bi-weekly pay $2,000 $2, (k) employee deferral $60 $0 401(k) employer match* $30 $0 Taxable wages $2,000 $2,000 Federal taxes** $388 $400 Net pay $1,552 $1, (k) total contribution $90 $0

7 Difference in take home pay: $48 per pay period Total annual 401(k) contribution: $2,340 ($1,560 employee + $780 company) Annual 401(k) contribution cost to employee: $1,248. It s like getting $1,092 in free money! ($2,340 total annual contribution - $1,248 employee contribution) After-Tax Contributions You may make After-Tax, as well as Before-Tax, Contributions to the 401(k) Plan. You may contribute from 1% to 10% of pay, in whole or partial percentages, on an after-tax basis. Your After-Tax Contributions are automatically deducted from each paycheck. See Limits on Employee Contributions and What s Included in Compensation for details on contributions and what components make up compensation under the 401(k) Plan. The earnings on your After-Tax Contributions are not taxed until you withdraw those contributions from the 401(k) Plan. Catch-Up Contributions If you re age 50 or will become age 50 by December 31 of the applicable calendar year, you are eligible to make additional Before-Tax Contributions, referred to as Catch-Up Contributions, provided you ve reached one or more of the contribution limits outlined in Annual Limits on Contributions. Your Catch-Up Contributions are automatically deducted from each paycheck before taxes. The earnings on your Catch-Up Contributions are not taxed until you withdraw those contributions from the 401(k) Plan. Catch-Up Contributions are not eligible for an Employer Matching Contribution. However, if you elect to make Catch-Up Contributions but do not reach the plan limits outlined above, your Catch-Up Contributions are re-characterized as Before-Tax Contributions and become eligible for the Employer Matching Contribution within match limits. (See Employer Matching Contributions.) Note: If you re age 50 or will attain age 50 by December 31 of the applicable calendar year, and a portion of your Before-Tax Contributions are required to be distributed from the Plan for the Plan to satisfy the IRS limits on Before-Tax Contributions, then regardless of whether you elected to make Catch-Up Contributions to the Plan, such excess amounts will automatically be contributed to the Plan as a Catch-Up Contribution until the Catch-Up Contribution limit is reached. If you don t want your excess Before-Tax Contributions to be contributed to the Plan as Catch-Up Contributions, you must advise the Plan Administrator by December 31 of the year for which such Catch-Up Contributions would otherwise be made. The maximum Catch-Up Contribution for 2013 is $5,500, so your total before-tax savings opportunity for 2013 is $23,000.

8 Annual Limits on Contributions Please note that some limits apply to your contributions, as follows: Total employee contributions: The total amount of Before-Tax and After-Tax Contributions you make to the 401(k) Plan for any pay period cannot exceed 85% of your compensation. Annual before-tax limit: The annual before-tax deferral limit is $17,500 for (If you re age 50 or older as of December 31, 2013, this limit is $23,000 in 2013 because it includes the Catch-Up Contribution.) Annual Compensation limits: The law also places an annual limit on the amount of compensation that can be counted for 401(k) Plan purposes. For 2013, this annual limit is $255,000 in compensation. Once your Annual Compensation reaches $255,000 for the year, you won t be able to make any additional Before-Tax or After-Tax Contributions for the remainder of the Plan Year. Overall contribution limit: Contributions may be limited if the total amount of Before-Tax Contributions, After-Tax Contributions, Employer Matching Contributions, RMBA Contributions, Discretionary Match/Profit Sharing Contributions, QNECs or QMACs made to the 401(k) Plan on your behalf is greater than your annual pay or $51,000 (for 2013), whichever is less. (Catch-Up Contributions are not subject to these limits.) Highly compensated employees: The IRS has imposed specific limitations on the amounts that highly compensated participants can contribute to plans like the 401(k) Plan. In any year, some highly compensated employees may be asked to reduce or discontinue their Before-Tax and/or After-Tax Contributions or receive a refund of some of these contributions due to the annual nondiscrimination testing performed for the 401(k) Plan. You ll be notified if you are affected by this limitation. What s Included in Compensation Here s a brief summary of what is and isn t included as compensation for purposes of the Tenet 401(k) Plan: What s Included in Compensation Your base salary Overtime Commissions Back-pay Call back Certain differentials Certain other types of cash compensation payable to you during the plan year What s NOT Included in Compensation 11

9 Cash bonuses paid after January 1, 1996 Severance pay effective January 1, 2006 PTO Sell effective March 8, 2008 Foreign service pay Hardship withdrawal allowances Any other pay intended to reimburse you for the higher cost of living outside the United States Annual Incentive Plan awards Automobile allowances ExecuPlan payments Housing allowances Relocation payments Deemed income Income payable under the stock incentive plans Christmas gifts Insurance premiums and other imputed income Pensions Retirement benefits Employer contributions to and payments from the 401(k) Plan Changing Your Contributions You may make the following changes to your contributions at any time through Fidelity: Increase or decrease the amount of your Before-Tax, After-Tax and/or Catch-Up Contributions (if eligible) Discontinue your Before-Tax, After-Tax and/or Catch-Up Contributions (if eligible) Resume making Before-Tax, After-Tax and/ or Catch-Up Contributions (if eligible) To make a change, submit a request to Fidelity by logging onto NetBenefits at or by calling Fidelity at The change will be effective on the first payroll date that is at least seven days, but not more than 21 days, after the notice is received by the Plan Administrator. Verify Your Changes It s always a good idea to verify that your new Before-Tax, After-Tax and Catch-Up Contribution elections are correct. If your changes were not processed correctly, you must advise the Plan Administrator within 45 days after receipt of your quarterly statement in order for the error to be corrected retroactively. Otherwise, corrections will be applied only to future contributions.

10 Annual Increase Program Increasing your contribution to the 401(k) Plan each year, even by a small amount, can provide significant benefits for retirement. Fidelity offers an easy way to automatically do this through its Annual Increase Program. You elect the amount and date for your annual increase by logging onto NetBenefits at and following the steps to sign up. Each year, on the designated date, your contributions will increase by the amount you elected. Rollover Contributions If you qualify for and elect a lump-sum distribution from another tax-qualified retirement arrangement such as a qualified 401(k) plan or a 403(b) annuity plan, you may contribute or roll over your distribution of before-tax or after-tax money directly into the Tenet 401(k) Plan. You re always 100% vested in the market value of your rollover account. (See the Vesting and Service section for more information about vesting.) The Rollover Contribution may be made directly by you within 60 days after you receive a distribution from the qualified plan or by a direct rollover from the qualified plan. In doing so, you can protect the tax-deferred status of the payout by transferring the money from your account in your former employer s plan to the 401(k) Plan. To make a Rollover Contribution, contact Fidelity to request a Rollover Contribution Form or go to click on the Tenet 401(k) Plan link and click on Plan Information & Documents to download the rollover form. You ll need to complete and return the form to Fidelity. You can make a Rollover Contribution as soon as your application is approved. Prior Plan Contributions The assets and liabilities of OrNda Healthcorp Savings and Investment Plan (the OrNda Plan ) were previously merged into the 401(k) Plan and are considered Prior Plan Contributions under the 401(k) Plan. If you were a participant in the OrNda Plan, your interest in that plan will be maintained and distributed to you according to the terms of Tenet s 401(k) Plan. The 401(k) Plan may also accept one or more transfers of assets from other qualified retirement plans in connection with the acquisition of a group of employees or a related entity, facility or trade or business. The transferred amounts are referred to as Prior Plan Contributions. QVECs Before January 1, 1991, the N-Tenet Plan required employees to make contributions known as Employee Mandatory Contributions, which aren t eligible for withdrawal until termination of employment. Likewise, between June 1, 1976, and December 31, 1990, employees could elect to make After-Tax Contributions to the N-Tenet Plan, referred to as Qualified Voluntary Employee Contributions. These contributions, if any, will be maintained and distributed under the terms of the plan. You may have these contributions as part of your account balance, but you can t add to those contributions.

11 Company Contributions Employer Matching Contributions Effective January 1, 2009, the Plan was modified to provide a discretionary matching contribution formula, meaning that Tenet in its discretion may make an Employer Matching Contribution each year to help build your retirement savings even faster. Effective January 1, 2009, the company decided to make Employer Matching Contributions that match 50% of your Before-Tax Contributions up to the first 3% of eligible compensation that you contribute, until further notice. This amount of Employer Matching Contributions can be increased or decreased at any time for future contributions, upon notice to employees. Please note: If you are an employee covered by a Collective Bargaining Agreement (CBA), you may wish to check with your Human Resources Department and/or Union as your Employer Matching Contribution may not have changed from the prior formula as of January 1, If your matching contribution formula did not change, it will remain at 100% of the first 3% of eligible compensation contributed as Before-Tax Contributions throughout the current year. You will be eligible for an Employer Matching Contribution if (i) Tenet decides, in its discretion, to provide an Employer Matching Contribution for a Plan Year (or you are covered by a CBA that provides for a matching contribution), (ii) you make Before-Tax Contributions to the Plan during the Plan Year, (iii) you work 1,000 or more eligible hours during the Plan Year and (iv) you are employed on the last day of the Plan Year (i.e., December 31). An exception to the last day of the year employment and 1,000 eligible hours or more requirement applies if you terminate employment during the year on account of (i) normal retirement after the attainment of age 59½, (ii) total and permanent disability (iii) terminate with severance agreement with general release or (iv) death. You ll be considered to have a total and permanent disability under the 401(k) Plan if you re totally and permanently disabled within the meaning of a long-term disability plan sponsored by your employer or you re determined to be totally and permanently disabled by a ruling issued by the Social Security Administration The Employer Matching Contribution, if any, will be contributed to your Employer Matching Account following the last day of the Plan Year. As required by IRS rules, this Employer Matching Contribution will be made no later than the due date (plus extensions) for filing Tenet s corporate tax return. You do not need to make Before-Tax Contributions for the entire Plan Year to be eligible for an Employer Matching Contribution. Compensation that you earned during a Plan Year with respect to time periods that you were not eligible to be a Participant in the Plan will not be included in determining the amount of an Employer Matching Contribution. For example: If you meet the eligibility requirements for becoming a Participant in the Plan on March 1, but do not elect to make Before-Tax Contributions to the 401(k) Plan until May 1, any Employer Matching Contribution will be determined based on up to 3% of your eligible Compensation earned from March 1 through December 31. Your pay earned before

12 March 1 will not be taken into account for purposes of determining an Employer Matching Contribution. See What s Included in Compensation for pay types that are considered compensation under the 401(k) Plan. Physicians working for certain Tenet employers are not eligible to receive an Employer Matching Contribution. Here s how much you receive at each contribution level under the current discretionary matching formula of 50% of the first 3% of eligible compensation contributed: Your Before-Tax Contributions* Tenet Matching Contributions 1% of Compensation.5% of Compensation 2% of Compensation 1% of Compensation 3% 75% of Compensation 1.5% of Compensation *Partial percentage contributions are allowed. Forfeitures from the nonvested portion of a terminated participant s Employer Matching Account that are not used to pay plan administrative expenses may be used to meet Tenet s contribution obligations under the Plan. (See Vesting and Service.) Profile Meet Juliet. Juliet is a five-year employee at Tenet and earns $52,000 a year. She has elected to contribute 8% in Before-Tax Contributions to the 401(k) Plan each pay period of the Plan Year. Before-Tax Contribution ($52,000 x 8%): $4,160 Tenet s Discretionary Employer Matching Contributions 50% of the Before- Tax Contribution, up to 3% of eligible compensation ($52,000 x 3% x 50%): $780 Total annual contribution (excluding investment gains or losses): $4,940 Your Employer Matching Contribution is subject to the vesting schedule described in the Vesting and Service section. If you leave Tenet, you ll forfeit any portion of your account that wasn t vested at the time of your termination. IRS Limits on Employer Matching Contributions The IRS places specific limitations on the amount of contributions that highly compensated participants may receive under plans like the 401(k) Plan. If these limitations are reached in any one year, the Employer Matching Contributions on behalf of some highly compensated employees, if any, may have to be reduced or refunded. You ll be notified if you re affected by this limitation. Dallas v.1

13 QNECs and QMACs To enable the 401(k) Plan to satisfy certain legal requirements, Tenet may make a Qualified Nonelective Contribution ( QNEC ) and/or a Qualified Matching Contribution ( QMAC ) to certain non-highly compensated participants. You ll be fully vested in any QNECs or QMACs credited to your Plan Accounts. Discretionary Match/Profit Sharing Contribution Tenet may make a Discretionary Match/Profit Sharing Contribution to the 401(k) Plan at its discretion. Generally, in order to share in any allocation of a Discretionary Match/Profit Sharing Contribution, you must be: Actively employed on the last day of the Plan Year; Be employed for 1,000 eligible hours or more in the Plan Year; or On an authorized leave of absence on the last day of the Plan Year; or Have retired, died or become totally and permanently disabled during the Plan Year. You ll be considered totally and permanently disabled under the 401(k) Plan if you re totally and permanently disabled within the meaning of a long-term disability plan sponsored by your employer or you re determined to be totally and permanently disabled by a ruling issued by the Social Security Administration. Discretionary Match and Profit Sharing Contributions are subject to the vesting schedule described in the Vesting and Service section. If you terminate employment, you ll forfeit any portion of your account that wasn t vested at the time of your termination. Forfeitures from the nonvested portion of a terminated participant s Discretionary Match/Profit Sharing Account, if any, that are not used to pay plan administrative expenses are used to meet Tenet s contribution obligations under the Plan. (See Vesting and Service.) RMBA Contributions If you are employed in California in a job classification covered by a CBA, Tenet has agreed to make an annual contribution of 1% of eligible compensation to the Plan as a Retirement Medical Benefit Account contribution (RMBA Contribution). In order to share in the RMBA Contribution, you must (i) perform at least 1,500 Hours of Service during the Plan Year and (ii) be employed on the last day of the Plan Year (i.e., December 31). You will be fully vested in any RMBA Contributions credited to your RMBA. *RMBA Contributions may be treated as QNEC contributions for purposes of performing nondiscrimination testing. Other Limits on Contributions The total amount of Before-Tax Contributions, After-Tax Contributions, Employer Matching Contributions, Discretionary Match/Profit Sharing Contributions, RMBA Contributions, QNECs and QMACs made to the 401(k) Plan on your behalf may not

14 Y ur Plan Account exceed the IRS Section 415 limits (i.e., 100% of your annual pay or $49,000, whichever is less). Catch-Up Contributions are not subject to these limits. Your Plan Accounts The 401(k) Plan maintains separate individual Accounts for each type of contribution you and the company make. Each Account includes contributions, net earnings (interest and dividends) from those contributions, investment gains and losses on those contributions, less any distributions made to you. In connection with the merger of the A-Tenet Plan into the N-Tenet Plan, all similar types of Accounts were combined (i.e., Before-Tax Accounts under the A-Tenet Plan were combined with Before-Tax Accounts under the N-Tenet Plan). Thus, if you had Accounts under both of the merged plans, all similar Accounts are now a single Account under the 401(k) Plan. Valuation of Your Accounts The value of your Accounts is determined daily. This means that your Accounts are adjusted to reflect contributions, investment gains or losses (after adjustment for investment management fees) and distributions that have occurred since the previous valuation day. As plan investments earn interest or dividends or change in value (i.e., gains or losses), your Accounts will be credited with these market changes, if any. These earnings or losses will be adjusted to reflect their proportionate share of plan expenses if the expenses are not paid by Tenet. Account Types You may have as many as 11 separate Accounts, and some may have sub-accounts for recordkeeping purposes: Account or Sub-Account Before-Tax Accounts After-Tax Accounts After-Tax Pre-1/1/91 Sub-Account (former N- Tenet Plan participants only) Employee After-Tax Sub-Account (former N- Tenet Plan participants only) Credited With Before-Tax Contributions, plus earnings and less losses After-Tax Contributions, plus earnings and less losses After-Tax Contributions and Employee Mandatory Contributions you made under the N-Tenet Plan before January 1, 1991, and After-Tax Contributions made under the money purchase portion of the OrNda Plan, if any, plus earnings and less losses Employee Voluntary Contributions you made to the N- Tenet Plan before January 1, 1991, and After-Tax Contributions you made under the N-Tenet Plan on and after January 1, 1991, plus earnings and less losses

15 Catch-Up Contribution Account Rollover Account Prior Plan Accounts QVEC Account Employer Matching Account QNEC Account QMAC Account Discretionary Match/Profit Sharing Account RMBA Catch-Up Contributions, plus earnings and less losses Rollover Contributions you make to the 401(k) Plan, plus earnings and less losses Contributions credited to your Accounts under a Prior Plan that are not otherwise credited to a separate account under the 401(k) Plan, as described above, plus earnings and less losses; there may also be various sub-accounts based on the type of contribution involved (e.g. before-tax matching). If you were a participant in the OrNda Plan, amounts contributed to that plan that were not fully vested are held in your Prior Company OrNda Employer Contribution Account. QVECs made to the OrNda Plan or N-Tenet Plan on your behalf, plus earnings and less losses Employer Matching Contributions, plus earnings and less losses QNECs, plus earnings and less losses QMACs, plus earnings and less losses Discretionary Match or Profit Sharing Contributions, plus earnings and less losses RMBA Contributions, plus earnings and less losses Vesting and Service Your right to ownership of your 401(k) Plan Accounts is known as vesting. You re always 100% vested in the value of the following Accounts: Before-Tax Account After-Tax Account Catch-Up Account QNEC Account QMAC Account QVEC Account RMBA Rollover Account Amounts that were fully vested when credited to your Prior Plan Account Otherwise, your Employer Matching Account and your Prior Plan Account* (if any) are subject to the following vesting schedule, which depends on your service with Tenet:

16 Years of Vesting Service Vested Percentage 0 0% 1 20% 2 40% 3 60% 4 80% 5 or more 100% * You re fully vested in all amounts transferred from the OrNda Plan to your Prior Plan Account, except Employer Matching Contributions, which are subject to the vesting schedule shown above. Employer Matching Contributions made under the OrNda Plan are credited to your Prior Company OrNda Employer Contribution Account. Regardless of your Years of Vesting Service, you become 100% vested in your Employer Matching Account and non-vested portion of your Prior Company OrNda Employer Contribution Account immediately if you: Reach Normal Retirement Age (i.e., age 59½); Become totally and permanently disabled while employed by Tenet; or Die while still employed by Tenet. If you re not yet vested when you leave Tenet, the unvested portion of your Employer Matching Account and your Prior Company OrNda Employer Contribution Account will be forfeited on the earlier of the following dates: (i) the date you receive a distribution of the vested portion of your Accounts due to your separation from service or (ii) the date you incur your fifth consecutive Vesting Break-in-Service. How Service Is Measured You re credited with a Year of Vesting Service for each Plan Year in which you complete 1,000 Hours of Service. You ll be credited with 45 Hours of Service for each week in which you re entitled to be credited with at least one Hour of Service. An Hour of Service is defined as an hour for which you re: Paid or entitled to payment by Tenet for the performance of duties; Paid or entitled to payment by Tenet on account of a period of time during which no duties are performed due to vacation, holiday, illness, incapacity, layoff, jury duty, military duty or leave of absence; or Entitled to back pay from Tenet. You will not be credited with the same Hours of Service for a period of time during which you both perform duties for Tenet or are absent from active duty due to vacation, illness, etc., and for which you re awarded back pay.

17 An Hour of Service also includes service you earn as an employee of a facility/group that Tenet acquires, if that facility or group maintained a qualified retirement plan as of the acquisition date and was granted credit for prior service. In this case, you ll be credited with 45 Hours of Service for each week in which you re entitled to be credited for at least one Hour of Service, regardless of status or actual hours worked. Years of Vesting Service upon Re-employment If you leave Tenet and are later re-employed by the company, your Years of Vesting Service earned prior to your termination of employment will be restored based on the following rules: If you terminate employment with Tenet (i) after becoming a participant and (ii) after completing a Year of Vesting Service, your Years of Vesting Service will be reinstated upon your re-employment. If you terminate employment with Tenet (i) before completing a 90-day Period of Service or (ii) before completing a Year of Vesting Service and (iii) you are re-employed before you incur a Vesting Break-in-Service, your Hours of Service before you terminated employment will be reinstated and will be considered in determining if you have completed a Year of Vesting Service. If you terminate employment with Tenet (i) before completing a 90-day period of Service or (ii) before completing a Year of Vesting Service and (iii) you are re-employed after you incur a Vesting Break-in-Service, your prior Hours of Service will be disregarded. What s a Vesting Break-in-Service? You ll incur a Vesting Break-in-Service for any Plan Year during which you fail to complete 500 or more Hours of Service and are not employed on the last day of the Plan Year. See If You re Rehired by Tenet for an explanation of when you may participate in the 401(k) Plan upon your reemployment. Normal Retirement Age If you reach your Normal Retirement Age while you are still employed by the Employer, you will become 100% vested in your Employer Matching Contribution account and the nonvested portion of your Prior Company OrNda Employer Contribution Account regardless of the number of Years of Vesting Service you have completed. Your Normal Retirement Age is the date you reach age 59½.

18 Investment Strategies in the 401(k) Plan The 401(k) Plan allows you to choose from a wide variety of investment options. You decide how to invest your account, in any combination a little here, a little there or a lot in one place to meet your investment objectives. You make your investment elections by choosing the percentage of your contributions you want directed to each fund. The 401(k) Plan s investment options include three broad strategies for investing, which offer different groups of investment options to meet the needs of different types of investors. These strategies are designed to respond to your individual investment objectives, your level of knowledge and experience with investing and your time available to monitor your investments. Strategy 1 The Lifestyle Funds help provide diversification by providing investment alternatives in the SSgA Dow Jones Target Funds, which are designed to invest in a range of investments. This group of funds is designed by professional portfolio managers to give you automatic diversification with an asset allocation strategy that s appropriate for your lifestyle as you approach retirement. Strategy 2 Extended Choice Funds offer fund selections representing the three general asset classes (stocks, bonds and short-term investments), which you can combine to create an asset allocation strategy to meet your own savings objectives. Strategy 3 BrokerageLink allows you to use Fidelity s brokerage service to invest in thousands of mutual funds, stocks (except Tenet common stock) and securities not currently offered under the 401(k) Plan. If you choose Strategy 1, the Lifestyle Funds help to provide automatic diversification. If you select Strategy 2 or 3, you ll need to pay attention to diversification on your own. An overview of each of these strategies, as well as the funds offered under each, begins below. If you re new to investing, you can pick investment options from the one strategy that makes sense for you. If you re a more seasoned investor, you might want to pick and choose from all three strategies, or just stick to one. It s entirely up to you. Keep in mind that any of the 401(k) Plan s investment options may be changed, closed to new investments or eliminated at any time and without prior notice. Generally, you can select your investment options for new contributions or exchange investment options for your account balance at any time. In certain cases, there may be limits on investment elections in and out of an investment fund to address market timing, short-term trading, excessive trading or other market concerns. You will be advised of any such limits. Strategy 1 Lifestyle Funds The Lifestyle Funds consist of the SSgA Dow Jones Target Funds, which are asset allocation mutual funds.

19 Type of Investor You may want to consider the funds in this group if: You understand the importance of diversification. You want the advantage of a professionally managed portfolio. You don t want to choose your own mix of investments. You don t want to continually adjust the asset allocation of your investment portfolio. The SSgA Dow Jones Target Funds and How They Work For each of the SSgA Dow Jones Target Funds, a professional portfolio manager determines and maintains a mix of assets (stocks, bonds and short-term investments) tailored toward certain investment objectives. With a choice of five asset mixes, you can build a diversified portfolio with an asset allocation strategy that s tailored to your goals and the funds maturity date. Over time, your portfolio is automatically rebalanced to maintain the asset allocation strategy indicated in the fund s official description, or prospectus. Each SSgA Dow Jones Target Funds offers a blend of stocks, bonds and short-term investments within a single fund. They re designed for investors who don t want to go through the process of picking several funds from the three asset classes but who still want to diversify among stocks, bonds and short-term investments. They also offer a simple approach to choosing investment options that keeps pace with your lifestyle as you approach retirement. What They Are The SSgA Dow Jones Target Funds are designed for investors who want a simple approach to investing for retirement by investing in a group of mutual funds that provide moderate asset allocation. The funds are managed by State Street Global Advisors. Each of these funds has a target retirement date range for example, or For each of these funds, the asset allocation strategy is strongly influenced by the number of years remaining until the fund s target retirement date range the fewer years remaining, the more conservative approach. In addition, the SSgA Dow Jones Target Today Index SM Fund designed for those already in retirement or retiring by 2010 [should this be changed to 2011?] emphasizes bond and money market mutual funds and seeks to maintain a stable asset allocation from year to year. Goal The SSgA Dow Jones Target Funds that have retirement date ranges after 2010 seek to provide high total returns. The goal of the SSgA Dow Jones Target Today Index SM Fund is to seek high current income and, secondarily, capital appreciation.

20 Fund Investments Each SSgA Dow Jones Target Fund invests in a combination of underlying stock, bond and money market mutual funds. The fund managers must invest in the group of specified underlying funds found in the prospectus and will aim for the projected target asset allocation percentages announced in the fund s annual and semi-annual reports. Share price and return of each fund will vary. The asset mix of each Target Fund with a retirement range beginning after 2010 will gradually become more conservative over time so investors can stay with the same fund before and after retirement. After reaching the target retirement range, these Target Funds continue to be managed more conservatively for five to 10 more years until their asset mix is approximately the same as the Target Today Index SM Fund. Ultimately, the funds will merge. SSgA Dow Jones Target 2045 Index SM Fund, with the longest time horizon, invests primarily in stock mutual funds to take advantage of potentially greater growth opportunities. The SSgA Dow Jones Target Today Index SM Fund designed for those already retired or retiring before 2010 is invested more conservatively than the other funds, with a larger percentage of assets in bond and money market funds and a smaller percentage of equity mutual funds. The portfolio manager chooses and monitors your allocation of investments. In the diagram below, funds to the left have potentially more inflation risk and less investment risk, and funds to the right have potentially less inflation risk and more investment risk. SSgA Dow Jones Target Today SSgA Dow Jones Target 2015 SSgA Dow Jones Target 2025 SSgA Dow Jones Target 2035 SSgA Dow Jones Target 2045 Each fund (except SSgA Dow Jones Target Today Index SM Fund) will gradually adjust its asset allocation to be more conservative as the funds approach their target retirement date and beyond. Approximately five to 10 years after the funds target retirement date, the asset allocation of each fund will match the asset allocation of the Target Today Index SM Fund. This spectrum illustrates the relative risk and return of each fund as compared to the other funds in the Target Fund family. Default Funds If you decide to contribute to the 401(k) Plan and do not select an investment option, any contributions made to your account will be invested in the SSgA Dow Jones Target Fund that corresponds to your year of birth. Your failure to select an investment option will be

21 deemed to be an affirmative election to invest in the SSgA Dow Jones Target Fund based on your year of birth and you will be responsible for the results of this investment. This means that the fiduciaries of the 401(k) Plan may not be responsible for any losses you may incur by reason of this investment. (See 404(c) Compliance.) The chart below illustrates the default fund Tenet believes will best fit your diversification needs should you not select an investment option. Fidelity, at the direction of Tenet, will invest your contributions in the age-appropriate SSgA Dow Jones Target Fund shown below. Date of Birth Range Fund Name Target Retirement Years On or before December 31, 1944 January 1, 1945 December 31, 1954 January 1, 1955 December 31, 1964 January 1, 1965 December 31, 1974 On or after January 1, 1975 SSgA Dow Jones Target Today Index SM Securities Lending Fund Class I SSgA Dow Jones Target 2015 Index SM Securities Lending Fund Class I SSgA Dow Jones Target 2025 Index SM Securities Lending Fund Class I SSgA Dow Jones Target 2035 Index SM Securities Lending Fund Class I SSgA Dow Jones Target 2045 Index SM Securities Lending Fund Class I Before For detailed fund information, log on to Fidelity NetBenefits at call Fidelity at or refer to your 401(k) enrollment kit. If you fail to select an investment option and your contributions are invested in the SSgA Dow Jones Target Fund that corresponds to your year of birth, you can move such amounts out of the SSgA Dow Jones Target Fund and into another investment choice daily by logging on to Fidelity NetBenefits at or calling the Tenet Healthcare Retirement Savings Line at You can use either the automated services, which are available 24 hours a day, seven days a week or speak with a services representative on business days from 8:30 a.m. to 12 midnight ET (7:30 a.m. to 11 p.m. CT and 6:30 a.m. to 10 p.m. MT). Transaction requests received after 4 p.m. ET or on weekends and holidays will receive the next business day s closing price.

22 Strategy 2 Extended Choice Funds How the Extended Choice Funds Work for You The Extended Choice Funds include over 30 investment funds, representing the three general asset classes (stocks, bonds and short-term investments). By choosing from this group, you can create a diversified portfolio. Type of Investor If you re comfortable creating a diversified portfolio from the various categories of funds offered, you may want to consider the funds outlined in Tenet s Individual Extended Choice Fund List available on The spectrum summarized in the Fund List, with the exception of the Domestic Equity category, is based on Fidelity s analysis of the characteristics of the general investment categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity category are based on the options Morningstar categories as of December 31, Morningstar categories are based on a fund s style as measured by its underlying portfolio holdings during the past three years and may change at any time. These style calculations do not represent the investment options objectives and do not predict the investment options future styles. Investment options are listed in alphabetical order within each investment category. Risk associated with the investment options can vary significantly within each particular investment category, and the relative risk of categories may change under certain economic conditions. For a more complete discussion of risk associated with the mutual fund options, please read the prospectuses before making your investment decisions. The spectrum does not represent actual or implied performance. Strategy 3 BrokerageLink While you have the opportunity to invest in over 30 funds through the Extended Choice Funds, there may come a time you want to purchase other funds not offered through the 401(k) Plan. In that case, you may want to use Fidelity s brokerage service called BrokerageLink, which allows you to invest in thousands of mutual funds, stocks (except Tenet common stock) and securities not currently offered under the 401(k) Plan. BrokerageLink is designed for experienced investors and is entirely optional. Brokerage services charge fees or sales loads (percentages of the investment sale) on certain transactions in mutual funds carrying transaction fees, as described below. If you enroll in BrokerageLink, you will do more of the work, taking responsibility for researching and managing your own investments. Before you enroll in a brokerage service, you should understand when you will pay fees and how much you will pay. With BrokerageLink, you do NOT pay You DO pay transaction fees or sales