In earlier releases of Lotus Notes/Domino, there were two types of policies - organizational policies and explicit policies.

Organizational policies are based on the user's hierarchical name and are applied to all users that are registered to a particular organizational unit. If a user is moved into that organizational unit, the policy will be applied. The other type of policy is explicit policies. These can be assigned to a particular user, or group of users. When assigning the policy to a group, the tool would assign the policy to every user in the group. This, however, was only run once at the time you assigned the policy. If users were added to the group after the policy had been assigned, they would not receive the policy.

New to Lotus Notes/Domino 8.5, dynamic group support for policies allows the Domino administrator the ability to assign user policy settings to a user group by specifying the group name in a policy document. Dynamic policies allow the Domino administrator to set an explicit policy with the group name in it. When users are added to the group, they are now automatically added to the policies. This reduces the amount of time and effort it takes for the Domino administrator to manage policies. Once the dynamic policy is created, it never needs to be touched again to update who it is assigned to. Just updating the group will take care of this.

To enable this feature, you can go to the new Policy Assignment tab in the primary policy document (not a settings document).