diff --git a/pkg/controllers/clusterresourceplacement/controller.go b/pkg/controllers/clusterresourceplacement/controller.go
index 5aaeea6af..4d0a1a4de 100644
--- a/pkg/controllers/clusterresourceplacement/controller.go
+++ b/pkg/controllers/clusterresourceplacement/controller.go
@@ -298,9 +298,9 @@ func (r *Reconciler) getOrCreateClusterSchedulingPolicySnapshot(ctx context.Cont
 	if crp.Spec.Policy != nil &&
 		crp.Spec.Policy.PlacementType == fleetv1beta1.PickNPlacementType &&
 		crp.Spec.Policy.NumberOfClusters != nil {
-		latestPolicySnapshot.Annotations = map[string]string{
-			fleetv1beta1.NumberOfClustersAnnotation: strconv.Itoa(int(*crp.Spec.Policy.NumberOfClusters)),
-		}
+		// Note that all policy snapshots should have the CRP generation annotation set already,
+		// so the Annotations field will not be nil.
+		latestPolicySnapshot.Annotations[fleetv1beta1.NumberOfClustersAnnotation] = strconv.Itoa(int(*crp.Spec.Policy.NumberOfClusters))
 	}
 
 	if err := r.Client.Create(ctx, latestPolicySnapshot); err != nil {
diff --git a/pkg/controllers/clusterresourceplacement/controller_test.go b/pkg/controllers/clusterresourceplacement/controller_test.go
index 0ab94457b..3142b830a 100644
--- a/pkg/controllers/clusterresourceplacement/controller_test.go
+++ b/pkg/controllers/clusterresourceplacement/controller_test.go
@@ -169,6 +169,7 @@ func TestGetOrCreateClusterSchedulingPolicySnapshot(t *testing.T) {
 							},
 						},
 						Annotations: map[string]string{
+							fleetv1beta1.CRPGenerationAnnotation:    strconv.Itoa(crpGeneration),
 							fleetv1beta1.NumberOfClustersAnnotation: strconv.Itoa(3),
 						},
 					},
@@ -400,6 +401,7 @@ func TestGetOrCreateClusterSchedulingPolicySnapshot(t *testing.T) {
 							},
 						},
 						Annotations: map[string]string{
+							fleetv1beta1.CRPGenerationAnnotation:    strconv.Itoa(crpGeneration),
 							fleetv1beta1.NumberOfClustersAnnotation: strconv.Itoa(3),
 						},
 					},
@@ -459,6 +461,7 @@ func TestGetOrCreateClusterSchedulingPolicySnapshot(t *testing.T) {
 							},
 						},
 						Annotations: map[string]string{
+							fleetv1beta1.CRPGenerationAnnotation:    strconv.Itoa(crpGeneration),
 							fleetv1beta1.NumberOfClustersAnnotation: strconv.Itoa(3),
 						},
 					},