Retention Policy and Retention tags driving me nut

Hi all,

Here I am spending my weekend in front of the computer figuring out how exactly Retention Policies and Retention tags work.

Below are the steps that I take:

1) Jumped onto MS Virtual lab and started the lab that basically would allow me to create some tag and policy

2) I create personal folder tag with action "Move to Archive once age limit of 1 day is reached"

3) I create retention policy and place this personal tag into this policy. I put just one tag for simplicity.

4) Apply this policy onto a user mailbox from Mailbox Settings tab and MRM.

5) I also enable personal arhive on this mailbox. I think this is necessary as action that I have set on the tag is Move to Archive.

6) I login as the user to OWA and also create a new folder called Personal. I also move an email item to this Personal folder from Inbox for testing.

Now the question is why I can't see Retention Policy setting when I right click on this email item?? What am I doing wrong??

My understanding with retention policy is as below:

I believe with retention policy, actions (move to archive, delete etc) are automatically taken by Managed Folder Assistant (MFA) as it continuously runs in the background in throttled mode on mailbox server. At the same time retention policy allows user to select retention policy to be applied on that specific item. This behaviour is unlike MRM 1.0 where MFA only runs between 1 AM till 9 AM each day.

Any help will be greatly appreciated..