Your 401(k) Retirement Savings Plan

Transcription

1 Your 401(k) Retirement Savings Plan As of January 1, 2011 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.

2 How the 401(k) Plan Works Tenet s 401(k) Plan makes saving for retirement easy! You may save a percentage of your 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 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 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 35 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. 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), unless you perform services for Tenet in connection with a business transaction such as an acquisition of a facility, a purchase of assets or an outsourcing agreement and the terms of the business transaction documents provide for your participation in the 401(k) Plan; 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

3 How thplan Works Eli g ibilit y 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. 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

4 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 $16,500 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 $22,000 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. Profile Meet Jack and Ellen. They ve been married for one year and are both in their 20s. Although they re both young and just starting out in their careers, Jack and Ellen know that it pays to start saving early for retirement. Ellen has been employed with Tenet for three months and earns $32,000 a year. She elects to contribute 10% of that amount to the 401(k) Plan. Ellen and her husband file a joint tax return with two allowances. Let s see how making Before-Tax Contributions instead of After-Tax Contributions can increase Ellen s take-home pay.

7 Before-Tax Savings After-Tax Savings COMPENSATION: $32,000 $32,000 BEFORE-TAX SAVINGS (at 10% of eligible pay): - $3,200 - $0 TAXABLE INCOME: $28,800 $32,000 FEDERAL INCOME TAX:* $4,320 $4,800 AFTER-TAX SAVINGS (at 10% of eligible pay): - $0 - $3,200 ANNUAL TAKE-HOME PAY: $24,480 $24,000 DIFFERENCE IN TAKE-HOME PAY: $480 *State and local taxes aren t included in this example. As you can see, simply by saving with Before-Tax Contributions instead of After-Tax Contributions, Ellen can boost her take-home pay by $480. 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 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. 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.)

8 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 2011 is $5,500, so your total before-tax savings opportunity for 2011 is $22,000. 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 $16,500 for (If you re age 50 or older as of December 31, 2011, this limit is $22,000 in 2011 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 2011, this annual limit is $245,000 in compensation. Once your Annual Compensation reaches $245,000 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 $49,000 (for 2011), 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:

9 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 NOT Included in Compensation 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)

10 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. 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.

11 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. 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 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 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 hours or more requirement

12 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 or (iii) 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 Compensation earned from March 1 through December 31. Your pay earned before 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 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.)

13 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 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. 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 hours or more in the Plan Year; 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.

14 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 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 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.

15 Y Pl A t 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. Administrative Fees Paid from Plan Accounts Administrative fees for maintaining your 401(k) Plan account are charged to your Account balance. The fee is $7 per year and is deducted from your account on a quarterly basis (i.e., $1.75 per quarter). As long as you have an Account balance on the last day of the quarter, this fee applies even if you are no longer employed by the Company. 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) CATCH-UP CONTRIBUTION ACCOUNT ROLLOVER ACCOUNT PRIOR PLAN ACCOUNTS QVEC ACCOUNT EMPLOYER MATCHING ACCOUNT QNEC ACCOUNT 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 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

16 QMAC ACCOUNT DISCRETIONARY MATCH/PROFIT SHARING ACCOUNT RMBA 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: 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.

17 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. 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.

18 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. 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

19 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 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. 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 investment options, you can select a diversified portfolio with an asset allocation strategy that s tailored to your goals based on a

20 fund s target date. Over time, your portfolio is automatically rebalanced to maintain the asset allocation strategy indicated in the fund s official description. Each SSgA Dow Jones Target Fund 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 various asset classes but who still want to diversify among stocks, bonds and short-term investments. The SSgA Dow Jones Target Date Funds also offer a simple approach to choosing an investment option 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 commingled funds that provide broad diversification and decrease their risk as their stated target dates approach. 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 the approach. In addition, the SSgA Dow Jones Target Today Fund designed for those already in retirement emphasizes bond and short-term investment funds and seeks to maintain a stable level of relative risk from year to year. Goal The SSgA Dow Jones Target Funds that have retirement date ranges after 2010 seek to provide a combination of capital appreciation and income, with more weight given to capital appreciation the farther out the targeted date. The goal of the SSgA Dow Jones Target Today Fund is to seek high current income and, secondarily, modest capital appreciation. Fund Investments Each SSgA Dow Jones Target Fund invests in a combination of underlying stock, bond and short-term investment funds. The fund managers invest in the group of specified underlying funds found in the trust documents and aim for the projected target asset allocation percentages as dictated by the Dow Jones Target Date Indexes. 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 10 additional years until their asset mix is approximately the same as the Target Today Fund. At that point in time, each dated Target Fund is likely to be merged into the Target Today Fund. SSgA Dow Jones Target 2045 Fund, with the longest time horizon, invests primarily in a diversified stock fund to take advantage of potentially greater growth opportunities. The

21 SSgA Dow Jones Target Today Fund designed for those already retired is invested more conservatively than the other funds, with a larger percentage of assets in bond and short-term investment funds and a smaller percentage in a diversified equity fund. 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. Each fund (except SSgA Dow Jones Target Today Fund) will gradually adjust its asset allocation to be more conservative as the fund approaches its target retirement date and beyond. Ten years after a funds target retirement date, the asset allocation of each fund will match the asset allocation of the Target Today 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 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 SSgA Dow Jones Target Today Securities Lending Fund Class I Before 2010 January 1, 1945 December 31, 1954 SSgA Dow Jones Target 2015 Securities Lending Fund Class I

22 January 1, 1955 December 31, 1964 January 1, 1965 December 31, 1974 On or after January 1, 1975 SSgA Dow Jones Target 2025 Securities Lending Fund Class I SSgA Dow Jones Target 2035 Securities Lending Fund Class I SSgA Dow Jones Target 2045 Securities Lending Fund Class I On or after 2040 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. Strategy 2 Extended Choice Funds How the Extended Choice Funds Work for You The Extended Choice Funds include 35 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. 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

23 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 32 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 not currently offered under the 401(k) Plan. BrokerageLink does not offer stocks or other securities. 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 fees when you: Participate (there are no annual planrelated fees) Invest in any of the 1,100 mutual funds available without transaction fees or sales loads You DO pay transaction fees or sales loads when you: Invest in any of the 4,400 mutual funds carrying transaction fees or sales loads Invest in no-load mutual funds that are not part of the no transaction fee program Sell transaction-fee funds Transfer funds from your 401(k) account to your BrokerageLink account The ability to tap into thousands of new investment funds is appealing to many investors, but that does not mean BrokerageLink is a good option for everyone. It might be suitable for you if you: Are a sophisticated investor. Want more investment options than those currently offered in the 401(k) Plan.

24 Are comfortable managing investments through a brokerage account and paying additional brokerage fees. Are confident in selecting investments from a broad array of offerings. Are willing to take increased risk of losing any retirement money in return for increased investment choices and potential returns. Can keep a minimum of $500 in your regular Plan investment funds. If the service is not right for you, you do not need to do anything. If you want to enroll in BrokerageLink, complete a Participant Acknowledgement Form, available at or through Fidelity NetBenefits at You may fund your BrokerageLink core account through payroll deduction or by exchanging money from one your existing 401(k) investment funds. You must maintain at least $500 in your regular Plan account to participate. When your BrokerageLink core account is active, you can access it online through Fidelity NetBenefits or through the FAST service using your touch-tone phone. Investing for Retirement What You Should Know The 401(k) Plan s range of investment options gives you plenty of choice and flexibility. However, if you re new to investing, chances are you might find having so many options a little daunting. To help you navigate through your options, here s a summary of some basic investment concepts to keep in mind. Risk and Return For many of us, our retirement goal is very simple: to have as much money as possible when we retire! In other words, we want to maximize our return the amount of money we receive from our investments over time. Different kinds of investments have different levels of expected return. Most of the time, the return you ll receive on a type of investment will depend on how risky it is. For example: If you deposit money in a bank passbook account, your interest or return isn t very great because there s very little chance or risk that you ll lose your money. If you invest in the corporate bond of a major car company, you ll receive higher interest payments because there s a higher risk that the car company could go out of business and stop paying you interest on your bond. If you invest your entire nest egg in the stock of a small software company, you could have seen large gains or large losses by now. The risks are high, but so are the potential returns. Remember, different types of investments have different levels of risk that you ll lose your money. The higher the risk, the greater the expected return and the greater the chance that you ll lose money.

25 Depending on how close you are to retirement, you may not want too much risk because you won t have as much time to recover from market fluctuations. On the other hand, if you re young and have many years before retirement, you have time to take more risk. Asset Classes the Building Blocks of Investing Investments can be divided into three general categories, or asset classes : stocks, bonds and short-term investments. Each asset class has different characteristics of potential risk and return. The following section briefly describes the three general asset classes. Stocks Investing for Growth Growth investments seek to increase your money over time. When you invest in a fund that owns stock, your fund actually buys part ownership in the companies in which it invests. The value of a stock can fluctuate. If you buy stock in a company and the company does well, the share price could increase and you could profit if you were to redeem your shares. On the other hand, if the company doesn t do well, or if the stock market as a whole suffers, the price of the stock could go down. Stocks have a high investment risk but historically have provided the highest returns over the long term. (However, past performance is no guarantee of future results.) What type of investor should consider stocks? Stocks may be a good option if you re investing for the long term, if you may not need your money for at least seven years and if you re comfortable with the investment risk inherent in stocks. Bonds Investing for Income Income investments generally provide a steady stream of income paid out at regular intervals. When you invest in a fund that buys bonds, your fund actually lends money to the companies or governments that issue them. These issuers promise to repay the fund s loan with interest. The value of a bond goes up and down, usually in reaction to interest rates. If interest rates decrease, the market value of an issued bond tends to increase. If interest rates increase, the market value of an issued bond tends to decrease. Bonds are generally positioned between stocks and short-term investments when it comes to investment risk and potential return. What type of investor should consider bonds? Bonds may be a good option if you re willing to accept moderate risk and may not need to access your money for at least three to seven years. Short-Term Investments Investing for Safety Short-term investments try to preserve the money you already have.

26 When you invest in a fund that buys SHORT-TERM INVESTMENTS, such as money market funds, certificate of deposits (CDs) and Treasury bills, your fund is lending money to the issuers for a short period of time, usually for less than one year. The value of a short-term investment is very stable and tends to provide a steady rate of return. Short-term investments often referred to as cash or cash equivalents have a low investment risk and generally provide lower returns than stocks or bonds over time. What type of investor should consider short-term investments? Short-term investments may be a good option if you re a conservative investor, have a shorter investment horizon, are willing to accept the risk that your investment may not keep up with inflation or want to balance a more aggressive portfolio. Please note: Unlike mutual funds, most CDs and U.S. Treasuries offer a fixed rate of return and guarantee payment of principal if held to maturity. Unlike most bank products (such as CDs), money market mutual funds are not FDIC insured. Diversification and Asset Allocation Spreading the Risk You ve probably heard the old saying, don t put all your eggs in one basket. In the world of investing, this means that you ll have less risk of losing your money if your investments are spread around, rather than all in one place. Diversification is spreading your money around in different investments to balance the risk. But there s more to diversification: Diversification should start with asset classes: stocks, bonds and short-term investments. This is known as asset allocation. Diversifying your assets does not necessarily mean owning a lot of investment funds. For instance, many stock investment funds actually own the same stocks. If you invest in similar funds, you may not get any protection against market declines and may end up paying higher costs. Asset allocation begins with spreading your investment dollars and risk among different baskets, or asset classes, such as stocks, bonds and short-term investments. Thinking about broad asset classes before you choose investments is a great way to simplify investing. The mix of investments you choose and the percentage of savings you elect to put in each is called your asset allocation strategy. Having an appropriate asset allocation strategy is the key to maximizing your savings while keeping the investment risk you take under control. Changes in Investment Direction The 401(k) Plan also gives you flexibility to change your investment directions. You may change your investment mix for future contributions, change your investment mix for your

27 past contributions or change the investment mix for both your future and past contributions daily. To do so, log on to Fidelity NetBenefits at or call Fidelity at You can use either the automated services, which are available virtually 24 hours a day, 7 days a week, or speak with a services representative 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). Transaction requests received after 4 p.m. ET or on weekends and holidays will receive the next business day s closing price. Are Your Investment Elections Correct? You should verify any changes in your investment elections to make sure they are correct. If your changes were not correctly implemented, 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 investment elections. If You Do Not Select an Investment Option If you decide to contribute to the 401(k) Plan and don t select an investment option, any contributions made to your account will be invested in the SSgA Dow Jones Target Fund that is appropriate based on your year of birth. See Default Funds for the list of funds. Your failure to select an investment option will be deemed to be an affirmative election to invest in the appropriate 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 for more information. Important Information About Investments You should be aware that a portion of the investment funds described on the previous pages may be invested from time to time in the plan s Cash Fund for short-term investment of contributions pending transfer to another Investment Fund or pending distribution to you after transfer from the Investment Funds. The Cash Fund is invested in a money market fund or equivalent investment. The Pension Administration Committee (PAC) may, from time to time, add new investment funds or eliminate existing funds. You will be notified if this occurs. You should remember that ALL INVESTMENTS HAVE SOME ELEMENT OF RISK. Therefore, you should select your plan investments based on your own financial and retirement needs. In addition, it is important to remember that stock investments can also go down as well as up. If stocks should go down as they probably will from time to time the dollar value of the funds invested in stock will decrease.

28 The 401(k) Plan has established procedures to assure confidentiality with respect to your investment decisions, and the Plan Administrator is responsible for monitoring compliance with those procedures. Periodically (normally with your quarterly statement but at least once a year), Tenet will provide you with separate written documents containing financial data for each of the past three Plan Years (or fewer, for newer funds) that should inform you of material trends and significant changes in the performance of the funds. You can also receive, by request, in separate written documents, the names of any of the funds investment managers and a description of any transaction fees and expenses that affect your Accounts. You may contact the Plan Administrator or Trustee to request: A description of the annual operation expenses of the 401(k) Plan A listing of the portfolio assets of the investment funds, the value of each asset or the portion of the portfolio that it constitutes and for assets that are fixed-rate investment contracts issued by a bank, savings and loan association or insurance company the name of the issuer of the contract, the term of the contract and the rate of return Information on the value of shares or units of any Investment Fund Copies of prospectuses and of any other material relating to the investment funds The past and current investment performance of each investment fund If you would like more information about the value of your account or want details on your fund information, log on to Fidelity NetBenefits at or call Fidelity at (c) Compliance The 401(k) Plan is intended to fulfill the requirements of section 404(c) of ERISA and the regulations relating to that section. This means that the fiduciaries of the Plan might not be liable for losses that are the direct result of your exercise of control over your Accounts. It is your responsibility to be aware of your investment decisions. You may want to seek independent investment advice. Quarterly Statements Account Statements Quarterly Online Statements Quarterly statements are provided online via Fidelity NetBenefits at These statements are available as soon as administratively possible after March 31, June 30, September 30 and December 31. The quarterly online statements show the balance of your Accounts and the changes that have occurred during the quarter. With online statements, you can view previous account information, retrieve statements from the past 24-month period and download information into money management software programs.

29 If you want to opt out of online statements, log on to Fidelity NetBenefits at go to Your Profile and change your election within the Mail Preferences area. Annual Paper Statement Fidelity mails an individual account statement to your home address annually. Any Time Updates You can also learn the value of your account balances at any time by contacting Fidelity at or going online to Participant Loans Although saving with the 401(k) should be a long-term proposition, there may be circumstances when you need financial assistance for more immediate needs, such as buying a home or sending your children to college. The 401(k) Plan has a loan provision to offer this additional financial support. You may borrow from your Account (other than your RMBA) while you re an active employee. When you take out a plan loan, you make loan repayments to your 401(k) Plan account, with interest. Loans from the 401(k) Plan have several advantages over other sources of money: Since loans are not considered withdrawals, they re not taxed either with regular income taxes or with a penalty tax unless the loan goes into default. The interest you pay is credited to your Accounts. The interest rate is competitive with that offered by commercial lending institutions. While you re an employee, your loan is paid back through convenient payroll deduction. You may have only one outstanding loan at a time. To apply for a loan, call Fidelity at Amount of Loan The minimum amount that you may borrow is $500. The maximum amount you may borrow from your 401(k) Plan Accounts is 50% of the vested balance of your Accounts, or $50,000, whichever is less. The $50,000 maximum limit is reduced by your highest outstanding loan balance in the past 12 months. You may have only one outstanding loan at any time. There will be a $35 charge for setting up your loan and a $3.75 quarterly fee to maintain the loan. The 401(k) Plan does not permit refinancing of an outstanding loan; rather, you must repay the outstanding loan in full (including any accrued interest) before an additional loan will be granted to you under the 401(k) Plan.

30 Interest Rate You ll be charged a fixed interest rate equal to the prime rate of interest as determined by Reuters on the last business day of the prior month in which the loan is made, plus 1%, unless this rate is not considered reasonable by Department of Labor Regulations. If that s the case, you will be charged what s considered a reasonable rate. In addition, if you are on military leave under the Solders and Sailors Civil Relief Act of 1940 ( SCRA ), the interest rate on your outstanding loan may not, during such period of leave, exceed the maximum rate prescribed by SCRA, which is generally 6%. The Plan Administrator or Plan Trustee will tell you the current rate of interest at the time you request the loan. Repayment of Your Loan The repayment schedule of your loan will depend on your reason for requesting a loan: If you request a loan for the purchase of your primary residence, the loan must be paid back within 15 years. If you request a loan for any other reason, the loan must be paid back within five years. The minimum period for which you may have a loan is six months. While you re an active employee, you ll repay your loan automatically through each bi-weekly payroll deduction, commencing within 30 days after the loan is issued. If you are an active employee, you can make partial loan repayments that will post to the principal balance only (not apply toward interest) or pay the loan in full by calling Fidelity at or logging on to Fidelity NetBenefits at You may also send a certified check or money order or pay a one-time sum via ACH. Any recurring payments are handled via periodic payroll deductions. Your loan repayments will be transferred to your investment funds according to your current investment elections. Once a loan is paid in full, you must wait 15 days before you can request a new loan. Loan repayments for inactive employees or employees who have terminated employment with Tenet must be made manually on a monthly basis, commencing within 30 days after termination or transfer to inactive status. You can make a full loan payoff, set up recurring payments through a designated bank account via ACH or make payments by certified check or money order. You may not apply for any additional loans from your 401(k) Plan Accounts unless you re re-employed by Tenet or a related entity and do not have an outstanding loan. The loan agreement will provide for the automatic reamortization of an outstanding loan upon your termination or transfer to inactive status. Different repayment rules apply to employees on a qualified military leave of absence or a nonmilitary leave of absence. If you are going on a leave of absence, contact your local Human Resources department.

31 Security You must secure your 401(k) Plan loan with an irrevocable pledge and assignment of 50% of the vested balance of your Accounts at the time the loan is made, as well as any other security deemed necessary by the Plan Administrator to adequately secure the loan. IMPORTANT NOTE: If any amounts in your Accounts are attributable to the Money Purchase portion of the N-Tenet Plan or a Prior Plan (i.e., you have amounts credited to your Pre-1/1/91 After-Tax Sub-Account, the OrNda Money Purchase Before-Tax Contribution Sub-Account or the OrNda Money Purchase Employer Sub-Account), your spouse, if any, must consent to the pledge of your vested Account balance as security for the loan. Default To avoid being in default on a loan, you must repay the loan according to its terms. If you re a terminated employee, you must begin making monthly manual loan payments within 30 days of your termination date. Your loan will be in default if you: Miss a loan payment and fail to make up the missed payment, plus interest on the missed payment from the original due date to the actual payment date, by the last day of the calendar quarter following the calendar quarter the payment was due; Do not pay the loan in full by its due date; Fail to execute a novation reamoritizing a prior loan in the event of an acquisition; or Have a full payout distribution due to a separation from service. Upon default, the Plan Administrator may: Make a demand for payment in full and an offset against the vested balance of your Accounts (there will be no offset against the vested balance of your Accounts attributable to Before-Tax Contributions, Catch-Up Contributions, QNECs, QMACs or Before-Tax Contributions to a prior plan before the date you become entitled to a distribution under the 401(k) Plan; in addition, such offset will not occur until you take a distribution from the 401(k) Plan); or Take any other action it considers necessary. Any loss caused by the nonpayment or other default on your loan obligation will be borne solely by your Accounts (i.e., the amount of the offset against the vested balance of your Accounts will include the outstanding balance of your loan, plus interest from the date of default to the date of the offset). In addition, until your loan is repaid, it will remain outstanding on your Accounts, and you will not be eligible for a new loan under the 401(k) Plan until you repay the outstanding amount.

32 I S i Withd l Deductibility of Interest The deduction of interest on your loan is subject to the general rules and limits concerning the deductibility of interest. In any event, no deduction is allowed with respect to interest paid on loans secured with before-tax savings or loans to key employees. In all cases, you should consult your tax adviser. Transferees If you transfer your account balance from a prior plan to this 401(k) Plan, any loan transferred will not be treated as in default or as maturing solely because you don t make loan repayments during the transition period of the transfer. Upon receipt of your prior plan Accounts, you may make any missed loan repayments in a lump sum, or you may have the balance of your loan reamortized over the remaining term of your loan. If you don t take either of these actions, your loan will be in default and treated in the manner described above. In-Service Withdrawals The 401(k) Plan s withdrawal feature allows you to access your savings while you re still employed by Tenet, provided you meet certain plan conditions. To request a withdrawal, contact Fidelity at After-Tax Contributions You may request an in-service withdrawal of your After-Tax Contributions and Voluntary Contributions, if any, at any time. However, you will owe taxes, and possibly penalties, on any earnings on your After-Tax and Voluntary Contributions while in the 401(k) Plan. You cannot request an in-service withdrawal of your amounts credited to your After-Tax Pre-1991 Sub-Account that are attributable to Employee Mandatory Contributions to the N- Tenet Plan or After-Tax Contributions made under the money purchase portion of the OrNda Plan. Before-Tax and Catch-Up Contributions Hardship Withdrawal You may obtain an in-service withdrawal from your Before-Tax Account, your Catch-Up Account and the portion of your prior plan account that contains your Before-Tax Contributions to a prior plan at any time for reasons of hardship. You may also obtain a hardship withdrawal after your termination of employment if you satisfy the criteria noted at right. The 401(k) Plan defines hardship as an immediate and heavy financial need due to any of the following:

33 Medical expenses for you, your spouse, children or dependents Costs directly related to the purchase of your principal residence Payment of tuition and related educational fees, including room and board, for the next 12 months of post-secondary education for you, your spouse, children or dependents Payments necessary to prevent the eviction of you from your principal residence or foreclosure on the mortgage of your principal residence Documented personal loss resulting from a federally declared natural disaster Payments necessary to reimburse you for funeral expenses for an immediate family member or any other individual who resides with you, regardless of whether legally related to you You may obtain a hardship withdrawal ONLY if you cannot satisfy the immediate and heavy financial need from other reasonably available resources, such as: Insurance reimbursement Liquidation of assets, including those of your spouse or minor children Ceasing to make Before-Tax Contributions to the plan Also, you must first withdraw your After-Tax Contributions and apply for a 401(k) Plan loan (or have an outstanding loan) before you can obtain a hardship withdrawal. The amount of your hardship withdrawal is limited to the amount necessary to satisfy the hardship, plus any taxes or penalties expected to result from the withdrawal and the amount available in your Before-Tax Account, Catch-Up Account and Prior Company 401(k) Sub- Account. Withdrawals After Age 59½ If you re at least age 59½, regardless of whether you ve terminated employment with Tenet, you may elect to withdraw all or a portion of your vested account balance. However, the following amounts are not eligible for withdrawal under these conditions: Amounts credited to your After-Tax Pre-1/1/91 Sub-Account that are attributable to employee mandatory contributions to the N-Tenet Plan or to After-Tax Contributions made under the money purchase portion of the OrNda Plan Amounts credited to your prior plan account that are attributable to Before-Tax Contributions or employer contributions to the money purchase portion of the OrNda Plan Rollover Account You may elect to withdraw all or any portion of your Rollover Account at any time, regardless of whether you ve terminated employment with Tenet.

34 Qualified Reservist Distributions If you are a member of a reserve unit and you are called to active duty for more than 179 days or an indefinite period, you may elect to withdraw your vested Accounts at any time during the period beginning on the date of your call to active duty and ending on the last day of your active duty period. If you are entitled to take this distribution and you have an outstanding loan under the 401(k) Plan, you may not receive a distribution of more than the amount of your vested Accounts minus the total amount of your outstanding loan. Reservist withdrawals are not subject to the IRS early withdrawal penalty of 10%. You may recontribute the amount of your reservist withdrawal to an Individual Retirement Account (IRA) as a nondeductible contribution during the two-year period following your active duty period. You may make a repayment contribution even if it would cause your total IRA contributions to exceed the general limit on contributions. Other Distributions While on Military Leave If you are on military leave while employed by Tenet, during the period you are performing service in the uniformed services, you may take a distribution of your vested Accounts from the 401(k) Plan as if you have terminated employment. Please note that unless the distribution qualifies as a qualified reservist distribution as described in the preceding paragraph: Your distribution will be subject to certain tax penalties. If you are entitled to take this distribution and you have an outstanding loan under the 401(k) Plan, you may not receive a distribution of more than the amount of your vested Accounts minus the total amount of your outstanding loan. You will not be able to recontribute amounts to the 401(k) Plan or an IRA that you withdraw under these provisions. If you return to active employment within six months of taking this distribution, you will not be able to contribute to the 401(k) Plan until after six months from the date of your distribution. You can obtain more information about applicable rules and whether you are eligible to take this type of distribution by contacting Fidelity at When You Leave Tenet When you retire, you ll be entitled to receive the full value of your Accounts anytime after 30 days from your date of termination. You ll also be entitled to receive the full value of your Accounts if you become totally and permanently disabled. In the event of your death, your beneficiary will be entitled to receive the full value of your Accounts.

35 Your Beneficiary Your beneficiary is the person you designate to receive your benefits under the 401(k) Plan in the event of your death. If you re married, your beneficiary is your spouse, unless your spouse consents in writing to your designation of another beneficiary. In order for your spouse s consent to be valid, it must be witnessed by a notary. If you re single and there is no beneficiary designation on file at the time of your death, your benefits will be paid to your estate. Special rules apply under the 401(k) Plan in the event you and your beneficiary die at the same time, or your beneficiary disclaims receipt of your plan benefit. If applicable, these rules will be communicated to you or your beneficiary, as appropriate. NOTE: For purposes of the 401(k) Plan, your spouse is a person of the opposite gender to whom you are legally married for federal income tax purposes (i.e. your spouse must qualify as a spouse under the federal Defense of Marriage Act). Your spouse does not include your domestic partner, unless your domestic partner is of the opposite sex and legally married to you for federal income tax purposes. The exclusion of same-sex domestic partners from the definition of spouse applies regardless of whether the domestic partner satisfies the requirements for domestic partner benefits under the Employer s group medical plan. YOU MUST DESIGNATE YOUR DOMESTIC PARTNER AS A BENEFICIARY FOR HIM OR HER TO RECEIVE BENEFITS UNDER THE 401(k) PLAN. If you leave Tenet for any other reason, you re entitled to receive the full value of your Before-Tax Account, After-Tax Account, Catch-Up Account, QNEC Account, QMAC Account, QVEC Account, RMBA Account, Discretionary Match/Profit Sharing Account and Rollover Account, plus the vested portion of your Employer Matching Account and Prior Company OrNda Employer Contribution Account. Payment of benefits under the 401(k) Plan is contingent upon the Plan Administrator s ability to locate you or your beneficiary. Therefore, it is important that you or your beneficiary keep the Plan Administrator informed about any changes in your address. Normal Form of Benefit Payment The normal form in which your Accounts will be paid depends on whether you participated in the A-Tenet or N-Tenet Plan and, if you participated in the N-Tenet Plan, whether you have amounts credited to your Accounts that are attributable to the money purchase portion of the N-Tenet Plan or a prior plan. N-Tenet Plan If you have amounts credited to your Accounts that are attributable to the money purchase portion of the N-Tenet Plan or a prior plan (i.e., you have amounts credited to your Pre- 1/1/91 After-Tax Sub-Account, the OrNda Money Purchase Before-Tax Contribution Sub- Account or the OrNda Money Purchase Employer Sub-Account), the normal form of your benefit for amounts in these Accounts depends on your marital status on your benefit commencement date: If you re married, the normal form of benefit is a qualified joint and survivor annuity. Alternatively, you can elect to receive a qualified optional survivor annuity instead of the qualified joint and survivor annuity.

36 If you re not married: Your normal form of benefit with respect to amounts credited to your After-Tax Pre-1/1/91 Sub-Account will be a 10-year certain annuity. Your normal form of benefit with respect to amounts credited to your OrNda Money Purchase Before-Tax Contribution Sub-Account or OrNda Money Purchase Employer Sub-Account will be a single life annuity. Your normal form of benefit for that portion of your Accounts that are not attributable to the money purchase portion of the N-Tenet Plan or a prior plan will be a single lump-sum cash payment. What is Your Benefit Commencement Date? Your benefit commencement date is the first date on which you are entitled to a distribution from the 401(k) Plan. Here are some more details about the forms of payment described above: A qualified joint and survivor annuity is an annuity that provides you with monthly payments for your lifetime and, upon your death, provides your surviving spouse with monthly benefits for his or her lifetime in an amount equal to 50% of your monthly payment. A qualified optional survivor annuity is an annuity that provides you with monthly payments for your lifetime and, upon your death, provides your surviving spouse with monthly benefits for his or her lifetime in an amount equal to 75% of your monthly payment. A 10-year certain annuity is an annuity that provides you with a monthly payment for your lifetime. If you die before you have received 120 monthly payments, monthly payments will continue to your beneficiary for the remainder of the 120-month period. A single life annuity is an annuity that provides you with monthly payments for your lifetime. These payments stop at the time of your death. Annuity payments may be made directly from the 401(k) Plan s trust fund or, alternatively, your Accounts may be used to purchase an annuity contract from an insurance company to provide these payments. If you do not have any amounts credited to your Accounts that are attributable to the money purchase portion of the N-Tenet Plan or a prior plan (i.e., you do not have amounts credited to your Pre-1/1/91 After-Tax Sub-Account, the OrNda Money Purchase Before-Tax Contribution Sub-Account or the OrNda Money Purchase Employer Sub-Account), your normal form of benefit is described below. A-Tenet Plan and N-Tenet Plan If you participated in the A-Tenet Plan, your normal form of benefit is a single lump-sum cash payment.

37 Optional Forms of Benefit Payment Instead of the normal form of benefit, you may elect to have your benefits paid in any of the following optional forms of benefit: LUMP SUM A single lump-sum cash payment. DIRECT ROLLOVER A payment in the form of a direct transfer to an eligible retirement plan. The term eligible retirement plan includes an individual retirement account or annuity ( IRA ), a Roth IRA, a retirement plan qualified under section 401(a) of the Internal Revenue Code maintained by another employer, a section 403(a) annuity plan, a 403(b) annuity contract or a 457 plan maintained by a state, political subdivision of a state or an agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts rolled over from the 401(k) Plan. COMBINATION A payment in the form of a single lump-sum cash payment and a direct rollover to an eligible retirement plan. SYSTEMATIC WITHDRAWAL PAYMENTS Available if you have attained age 55. Payment in the form of systematic withdrawal payments on a monthly or annual basis, in either a flat dollar amount or decrementing counter amount that is determined by dividing your accounts by a counter that reduces by one each time a systematic withdrawal is paid. Election of Optional Forms of Benefit Payment If you re married and your benefits are payable in the form of a qualified joint and survivor annuity and you wish to elect an optional form of benefit payment (other than the qualified optional survivor annuity) and/or designate someone other than your spouse as beneficiary, your spouse must provide consent. Your spouse s consent must be in writing and witnessed or notarized. Your spouse s consent is not required to elect the qualified optional survivor annuity. If you fail to file this written election (and, if applicable, the beneficiary designation) or if your spouse does not properly consent to that election, your election of an optional form of benefit and/or beneficiary designation will not be valid. If your marital status changes, you should review this election because it may no longer be valid. Automatic Cashout If the vested balance of your Accounts is $1,000 or less, it will be paid to you as soon as possible following your separation from service. Alternatively, you may elect to have your Accounts paid in the form of a Direct Rollover to another employer s qualified retirement plan or an IRA. If the vested balance of your Accounts exceeds $1,000, you won t receive payment before you reach Normal Retirement Age, unless you elect an earlier distribution.

38 When you become eligible for a distribution, you will receive a Special Tax Notice Regarding Plan Payments, which describes the tax consequences and any penalties associated with your distribution. Deferral of Payments If the balance of your Accounts exceeds $1,000, you may elect to defer payment until the April 1 following the calendar year in which you reach age 70½ or leave Tenet, whichever is later. Minimum Required Distributions The tax laws and regulations require you to start taking minimum distributions from the Plan by April 1 of the year following the year in which you turn 70 ½ years of age. Minimum distributions must continue every December 31 thereafter. A distribution administrative fee of $25 applies to each minimum required distribution. It is your responsibility to keep the Plan Administrator informed of your current address so that the Plan Administrator can notify you of the amount of your required distributions. If these distributions are not made in a timely manner, an excise tax equal to 50% of the amount of any required distribution ordinarily applies (you have the option of applying to the IRS for a waiver of the excise tax). Death Before Benefit Commencement Date If you die before your Benefit Commencement Date, the form in which your Accounts will be paid depends on whether you participated in the N-Tenet or the A-Tenet Plan and, if you were a participant in the N-Tenet Plan, whether you have amounts credited to your Accounts that are attributable to the money purchase portion of the N-Tenet Plan or a Prior Plan. N-Tenet Plan If you have amounts credited to your Accounts that are attributable to the money purchase portion of the N-Tenet Plan or a prior plan (i.e., you have amounts credited to your Pre- 1/1/91 After-Tax Sub-Account, the OrNda Money Purchase Before-Tax Contribution Sub- Account or the OrNda Money Purchase Employer Sub-Account), your survivor benefits for amounts in these Accounts depends on your marital status on the date of your death: If you re married, these Accounts will be paid to your surviving spouse in the form of a Pre-Retirement Survivor Annuity consisting of monthly benefits for his or her lifetime. Wh n Y L T n t You may elect, with the consent of your spouse, to waive the Pre-Retirement Survivor Annuity and to have these Accounts paid in one of the optional forms of benefit described in the previous section. If you don t elect to waive the Pre-Retirement Survivor Annuity, your surviving spouse may elect to do so following your death.

39 If you re not married, these Accounts will be paid to your beneficiary in a single lumpsum cash payment. In any event, the portion of your Accounts NOT attributable to the money purchase portion of the N-Tenet Plan or a prior plan will be paid to your beneficiary in the form of a single lump-sum cash payment. A-Tenet Plan If you participated in the A-Tenet Plan, your Accounts will be paid to your beneficiary in a single lump-sum cash payment, regardless of whether you are married on the date of your death. RMBA Your RMBA Contributions will be credited to your RMBA and may be paid to you under the same rules that apply to your other Accounts after you terminate employment, retire or incur a total and permanent disability. The normal form of distribution for your RMBA is a single lump-sum cash payment; however, if your vested Accounts (including your RMBA) exceed $1,000, you may elect to have your RMBA paid in any of the forms of distribution offered under the 401(k) Plan (i.e., lump sum, systematic withdrawal payments in the case of a distribution, a Direct Rollover or a combination lump sum and Direct Rollover). Alternatively, you may elect to defer payment of your RMBA until April 1 following the later of the calendar year in which you reach 70½ or leave the Employer. If, at the time you terminate employment, the value of your vested Accounts (including your RMBA) does not exceed $1,000, such accounts will be paid to you as soon as possible in the form of a lumpsum cash payment, unless you elect to receive a Direct Rollover. You will not be able to obtain loans with respect to amounts credited to your RMBA or to obtain any in-service withdrawals from your RMBA by reason of hardship. If you die with a balance in your RMBA, it will be paid to your Beneficiary in the form of a single lump-sum cash payment, unless your Beneficiary is eligible to receive payment in the form of a Direct Rollover and elects that option. Circumstances That May Affect Your Benefits Future of the 401(k) Plan Although Tenet intends to continue the 401(k) Plan indefinitely, it realizes that circumstances not now foreseen or circumstances beyond its control may make it either impossible or inadvisable to continue to sponsor the 401(k) Plan. Therefore, Tenet through action of its Compensation Committee has the right to amend, modify or terminate the 401(k) Plan, in whole or in part, at any time at its option.

40 A decision to change or terminate the 401(k) Plan may be due to business conditions, changes in the law governing such plans or any other reason. If the 401(k) Plan is terminated or partially terminated, or your employer s contributions are permanently discontinued, affected participants will become fully vested in their Employer Matching Accounts, Discretionary Match/Profit-Sharing Accounts and unvested Prior Plan Accounts. (Participants are already fully vested in their Before-Tax Accounts, After-Tax Accounts, Catch-Up Accounts, QNEC Accounts, QMAC Accounts, QVEC Accounts, RMBAs, Rollover Accounts and vested portion of their Prior Plan Accounts.) If the 401(k) Plan is terminated, the Plan Administrator will determine the timing of the disposition of assets to Plan participants and their beneficiaries. In addition, you should know that benefits under the 401(k) Plan are not insured by the Pension Benefit Guaranty Corporation (PBGC), a government agency that insures pension plans, because this is a defined contribution plan and, unlike a pension plan, does not have definitely determinable benefits. Any benefits payable by the 401(k) Plan are based on amounts contributed and investment results, which cannot be determined in advance. No Guarantee of Employment This 401(k) Plan should not be considered an employment contract between you and Tenet. It does not guarantee you the right to be continued in Tenet s employment, nor does it limit Tenet s right to discharge you or any employee. Upon termination of employment, you will not have any right to or interest in any of the 401(k) Plan s assets, except for the benefits to which you are entitled under the 401(k) Plan. Nontransferability of Benefits Generally, your benefits under the 401(k) Plan may not be alienated that is, sold, used as collateral for a loan, given away or otherwise transferred. Also, your creditors may not attach, garnish or otherwise interfere with your benefits under the 401(k) Plan. However, your benefits may be transferred to the IRS pursuant to a valid tax levy. In addition, the 401(k) Plan may be required by law to recognize obligations that you incur as a result of court-ordered child support or alimony. The 401(k) Plan must honor a Qualified Domestic Relations Order, which is defined as a decree or order issued by a court that obligates you to pay child support or alimony or otherwise allocates a portion of your benefits under the 401(k) Plan to your spouse, former spouse, child or other dependent, referred to as an Alternate Payee. If such an order is received by the Plan Administrator, all or a portion of your benefits may be used to satisfy the obligation. If so, the Plan Administrator may set up separate Accounts for the Alternate Payee and transfer that portion of your benefit to those Accounts, where it will be subject to the rules regarding loans, in-service distributions and complete distributions. Also, an alternate payee who has separate Accounts under the 401(k) Plan may elect to make a rollover contribution to those Accounts, subject to plan requirements.

41 The Plan Administrator must determine the validity of any domestic relations order received. The cost to perform this review will be paid from your account balance. Once the domestic relations order is reviewed, you will be advised accordingly. The Qualified Domestic Relations Order review fees are: $300 for review of a Web-Generated Order (Web-Generated Orders can only cover one plan), or $750 for review of a non-web-generated Order that covers one or more plans or a Web-Generated Order that has been materially altered. Top-Heavy Rules A complicated set of rules and mathematical calculations set out in the 401(k) Plan, as required by the Internal Revenue Code, may apply in the unlikely event that the 401(k) Plan becomes a Top-Heavy Plan. Simply stated, a Top-Heavy Plan is one in which more than 60% of the contributions or benefits have been allocated to key employees. Key employees are generally owners, officers, shareholders or highly compensated individuals. If the 401(k) Plan becomes top-heavy in any year, you may be entitled to certain minimum benefits and special rules will apply. The Plan Administrator is responsible each year for determining whether the 401(k) Plan is top-heavy. You will be notified if the 401(k) Plan becomes top-heavy. Nondiscrimination Testing The Internal Revenue Code requires the 401(k) Plan to satisfy certain nondiscrimination tests that are designed to ensure that the contributions made by and on behalf of highly compensated employees do not exceed those contributions made by and on behalf of nonhighly compensated employees. As a result of these nondiscrimination tests, certain highly compensated employees may be limited to a certain deferral or receive a refund of contributions made by or on behalf of such employees during the year. You ll be advised if these limits apply to you. Other Important Information Plan Expenses Expenses attributable to the maintenance and administration of the 401(k) Plan s investment funds will be approved by the Plan Administrator and paid from the fund s earnings to the extent they are sufficient and any excess shall be paid from the fund s principal. In addition, other expenses of maintaining the 401(k) Plan, such as trustee fees, recordkeeping fees and legal expenses, shall be approved by the Plan Administrator and paid from each investment fund s earnings on a pro rata basis and to the extent necessary from each investment fund s

42 Oth r m p rt nt n rm i n principal, unless paid by Tenet. The administrative fee related to maintenance of individual accounts will be paid from your account balance. Filing Claims for Benefits If you (or your beneficiary) feel you are being denied any benefit or right provided under the 401(k) Plan, you (or your beneficiary or your beneficiary s authorized representative) must file a written claim with the Plan Administrator. All such claims must be submitted on a form provided by the Plan Administrator, which must be signed by the claimant and will be considered filed on the date the claim is received by the Plan Administrator. Request for Benefits If your Request for Benefits is partially or wholly denied, the Plan Administrator will explain, in writing, the basis for the denial. This will ordinarily be done in 90 days but, in unusual circumstances, this period may be extended by up to 90 days if you are given notice of the extension in writing. The written notification from the Plan Administrator will tell you if any information is needed to perfect your claim to benefits and explain why the information is needed. In addition, if your claim is denied, the notification will explain the reason for the denial, refer to the pertinent provisions for the 401(k) Plan on which the denial is based, tell you how and when an appeal should be made and advise you of your right to arbitration if your appeal is denied. Appeal of Denied Request for Benefits If your Request for Benefits is denied, you may file an appeal with the PAC, in writing, within 90 days after receipt of a notice of denial of your request. If you do not make your written appeal within 90 days, the original decision of the Plan Administrator will become final. You may include in your written appeal your reasons for appeal and any information to support your rights to benefits. You may use legal assistance and you may examine and receive copies, upon request and free of charge, of any pertinent and related plan documents. The Pension Administration Committee (PAC) will then examine all of the facts and information submitted by you (regardless of whether such information was considered in the review of the initial claim) and come to a final decision. Such decision will be made by the date of the next meeting of the PAC that follows the PAC s receipt of your appeal, unless your appeal is received within 30 days before that meeting. If that happens, the PAC s decision will be made by no later than the second meeting of the PAC following the receipt of your appeal. If there are special circumstances that require additional time to process your appeal, you will be notified in advance of the need for an extension. However, in no case will the PAC s decision be made later than the third regularly scheduled meeting of the PAC after your appeal is received. The notice of the PAC s decision will be

43 provided to you as soon as possible but no later than five days after the decision is made. The notice of the decision will include specific reasons for the decision; identify the plan provisions on which the decision is based; advise you that upon request and free of charge, you may receive reasonable access to and copies of all documents, records and other information relevant to your claim; and inform you of your right to arbitration if your appeal is denied. Mandatory Arbitration of Denied Request for Benefits If you re not satisfied with the outcome of the claims review procedure described above with respect to your Request for Benefits, you may appeal to a third-party, neutral arbitrator. You must appeal to an arbitrator within 60 days after the PAC s denial of your appeal and before bringing suit in court. The arbitrator will be mutually selected by you and the PAC from a list of arbitrators provided by the American Arbitration Association (AAA). If you and the PAC are unable to agree on the selection of an arbitrator within 10 days of receiving the list from the AAA, the AAA will appoint an arbitrator. The arbitrator s review will be limited to interpretation of the plan document in the context of the particular facts involved, and any financial award that may be granted by the arbitrator will be limited to the maximum benefits provided under the 401(k) Plan. You, the PAC and Tenet agree to accept the award of the arbitrator as binding. All exercises of power by the arbitrator hereunder will be final, conclusive and binding on all interested parties, unless found by a court of competent jurisdiction, in a final judgment that is no longer subject to review or appeal, to be arbitrary and capricious. The costs of arbitration will be paid by Tenet, but you must pay your own attorney s fees or witness costs. However, the arbitrator may, as part of his award, require Tenet to reimburse you for all or a portion of these amounts. The arbitrator will have no power to add to, subtract from or modify any of the terms of the 401(k) Plan; change or add to any benefits provided by the 401(k) Plan; or waive or fail to apply any requirements of eligibility for a benefit under the 401(k) Plan. Nonetheless, the arbitrator will have absolute discretion in the exercise of its powers in this 401(k) Plan. Arbitration decisions will not establish binding precedent with respect to the administration or operation of the 401(k) Plan. Your Rights Under ERISA As a participant in the 401(k) Plan, you re entitled to certain rights and protections under ERISA. ERISA provides that all plan participants are entitled to: EXAMINE, WITHOUT CHARGE, AT THE PLAN ADMINISTRATOR S OFFICE, all plan documents, including insurance contracts and copies of all documents filed by the 401(k) Plan with the U.S. Department of Labor, such as detailed annual reports and plan descriptions. OBTAIN COPIES OF ALL PLAN DOCUMENTS AND OTHER PLAN INFORMATION UPON WRITTEN REQUEST TO THE PLAN

44 ADMINISTRATOR. The Plan Administrator may make a reasonable charge for the copies. RECEIVE A SUMMARY OF THE 401(k) PLAN S ANNUAL FINANCIAL REPORT. The Plan Administrator shall furnish each participant with a copy of this summary annual report. In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the 401(k) Plan. The people who operate your 401(k) Plan, called fiduciaries of the 401(k) Plan, have a duty to act prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a plan benefit or for exercising your rights under ERISA. If your claim for a plan benefit is denied in whole or in part, you must receive written explanation of the reason for denial. You have a right to have the Plan Administrator review and reconsider your claim. Under ERISA, there are legal steps that you can take to enforce these rights. For instance, if you request materials from the 401(k) Plan and do not receive them in 30 days, you may file suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits that is denied or ignored, in whole or part, you may file suit in state or federal court. In addition, if you disagree with the Plan Administrator s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in Federal court. If it should happen that plan fiduciaries misuse the 401(k) Plan s money or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or you may file suit in a federal court. The court will decide who should pay the court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees (if it finds your claim frivolous, for example). Tenet hopes that this plan summary provides you with full and complete information about the 401(k) Plan and your rights under ERISA. If you have any questions, please contact the Plan Administrator, or, if you prefer, you may contact the nearest Office of the Employee Benefits Security Administration, U.S. Department of Labor, in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, or the U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, DC EMPLOYER IDENTIFICATION NUMBER* PLAN NAME PLAN TYPE Tenet Healthcare Corporation 401(k) Retirement Savings Plan The 401(k) Plan is a profit sharing plan with a 401(k) salary deferral feature.

45 ERI A Pl n Inf rm t n PLAN IDENTIFICATION NUMBER* Tenet Healthcare Corporation 401(k) Retirement Savings Plan 335/001 PLAN YEAR January1 through December 31 PLAN SPONSOR PLAN ADMINISTRATOR PLAN TRUSTEE AGENT FOR SERVICE OF LEGAL PROCESS Tenet Healthcare Corporation 1445 Ross Avenue, Suite 1400 Dallas, Texas (469) Manager, 401(k) Plans Tenet Healthcare Corporation 1445 Ross Avenue, Suite 1400 Dallas, Texas (469) Fidelity Investments 300 Puritan Way, Mail Zone MM3B Marlborough, MA 0172 (800) Tenet Healthcare Corporation 1445 Ross Avenue, Suite 1400 Dallas, Texas Attn: Vice President, Compensation & Benefits *Some information about the 401(k) Plan is filed with the Internal Revenue Service and the Department of Labor. If you wish to write to either agency, you must refer to the Employer Identification Number and Plan Identification Number listed in the chart above. Effective Date This SPD describes the terms of the 401(k) Plan as amended and restated effective January 1, Compensation Committee The Compensation Committee of the Board of Directors of Tenet Healthcare Corporation is responsible for the operation of the 401(k) Plan. The Compensation Committee has the authority to amend or terminate the 401(k) Plan and appoint the administrative committee responsible for the overall administration of the 401(k) Plan. PAC The Compensation Committee has appointed an administrative committee known as the Pension Administration Committee (PAC), which is responsible for the overall administration of the 401(k) Plan. The PAC has the authority to appoint the Plan Administrator to handle the day-to-day administration of the 401(k) Plan, select the Investment Funds under the 401(k) Plan and make final determinations regarding claims for benefits under the 401(k) Plan. In addition, the PAC has the authority to amend the 401(k) Plan to comply with changes in the law or to incorporate design or administrative changes that do not materially impact the cost of the 401(k) Plan to Tenet. Although the PAC cannot change any part of the 401(k) Plan, the PAC does have the responsibility and discretion to

46 interpret and enforce all plan provisions in its sole and absolute discretion; however, any exercise of discretion by the PAC must be exercised in a uniform and nondiscriminatory manner. The PAC s address and telephone number are: Pension Administration Committee Tenet Healthcare Corporation 1445 Ross Avenue, Suite 1400 Dallas, Texas (469) Plan Administrator The PAC has appointed the Plan Administrator to handle the day-to-day administration of the 401(k) Plan. This includes establishing the rules necessary to administer the 401(k) Plan, keeping employee records, informing the participants of all changes or amendments to the 401(k) Plan, bringing the 401(k) Plan into conformity with governmental laws and regulations, determining initial claims for benefits under the 401(k) Plan and making available to all participants reports and documents as prescribed by law. Although the Plan Administrator cannot change any part of the 401(k) Plan, the Plan Administrator does have the responsibility and discretion to interpret and enforce all plan provisions in its sole and absolute discretion; however, any exercise of discretion by the Plan Administrator must be exercised in a uniform and nondiscriminatory manner. The Plan Administrator is: Manager, 401(k) Plans Tenet Healthcare Corporation 1445 Ross Avenue, Suite 1400 Dallas, Texas (469) Plan Trustee All assets of the 401(k) Plan are held in the Trust Fund maintained by the Trustee. The Trustee is responsible for handling the assets of the 401(k) Plan and investing those assets in accordance with your directions and the directions of the Plan Administrator. The Trustee is subject to strict rules concerning the administration of the Trust Fund and its investments to assure that the Trust Fund and its investments are handled with care, skill, prudence and diligence for the good of all participants in the 401(k) Plan. The Trustee is: Fidelity Investments 300 Puritan Way, Mail Zone MM3B Marlborough, MA