TSM is unlike any other backup system you have ever used before, with very different concepts.
Backups are daily. Period. There is no such thing as weekly, yearly, etc. so do not make separate schedules for that, which will only confuse things and will not accomplish what you think you want. Every day, TSM backs up ONLY the individual files that were changed or added that day. It knows it does not need to back up anything else, which makes it much more efficient than any other backup method. It only keeps one copy of a generation of a file, as opposed to other backup systems which back up the exact same file over and over and over. A "full backup" is available for restore at any time, which will require mounting several tapes written at different times, but it will still be a full restore. This is called "progressive incremental backup" or "incremental forever", and it is the fundamental concept of TSM.
Backups are kept forever, as long as the file remains on the client. You get to decide what happens to files that get changed or deleted via TSM policies - you can specify that they are kept for however long you want, depending on how many tapes you have and what your auditors demand. Longer retention of changed and deleted files will use more tapes.
Tapes are rotated via expiration and reclamation processes, which work on individual files, not whole backups. So if you say to keep changed or deleted files forever, tapes will never rotate. If you say to keep them for 1 year, then no tapes will rotate until 1 year has passed.
You need to read up on TSM fundamental concepts before making any other decisions like this that are not relevant to TSM. One good place to start is IBM's TSM Information Centers.
