That's how I've understood it. Renewal "buys" the current version on the renewal date. Renewal effectively re-registers the software. But I could be wrong.

From the Website:
Update Service:
...
2.Renew the Update Service. Your perpetual license will now be for the version current on the day of renewal. In addition, you will continue to get access to new feature and content updates for the next 365 days after renewal.