Just as an update I noticed this on the m&m website today:

How long will my miles remain valid if I lose my Frequent Traveller, Senator or HON Circle Member status?
For as long as you have a given status, irrespective of which one, your miles will not be subject to mileage expiration. Mileage expiration is only reactivated when Frequent Traveller status is lost. From that point onwards they are valid for 36 months and then expire at the end of the quarter.
An example: your Frequent Traveller status expires on 1 March 2015. If your status is not renewed or a new status achieved, your miles will then be valid for a further 36 months - until 1 March 2018. They will expire at the end of the next quarter, i.e. on 31 March 2018.

So that would indicate that miles are valid from 36 months after losing status not 36 months after earning the miles once the status is lost. Any comments? Am I reading this correctly?