I'm getting wound up in knots trying to figure this out, sanity check required 
- hope someone can help.

A backup copygroup specifies retention by time period to e.g. 32 days 
(RETEXTRA=32). To ensure the ability to perform a point in time restore at any 
point in the previous 32 days the number of inactive versions to retain must be 
set to NOLIMIT just in case multiple backups per day happen (VEREXISTS=NOLIMIT).

The copygroup then specifies that the last version of a file must be kept for a 
year if the file is deleted (RETONLY=366).
The retain inactive versions is also set to NOLIMIT so that if a file is 
deleted by accident and not reported until the next day it can be restored and 
no loss of backup versions happens (VERDELETED=NOLIMIT).

OK, the question is when do the inactive versions of a file get expired in this 
case? Is it after the 32 days or after the year?

My understanding of the VERDELETED parameter is that it is used when a backup 
discovers a file has been deleted and then it immediately marks any versions 
greater than this number of expiration. Then the RETEXTRA and RETONLY 
parameters define what happens in future expiration runs. My expectation from 
this setup is that 

1/ when a file is noted as deleted by the backup nothing will get marked for 
expiration
2/ over the next 32 days we should lose all versions in excess of 32 days old
3/ the last version will be kept for 366 days from time of being marked 
inactive.

Is this right?

Thanks
Alan