As it turns out F5 Big-IP LTM devices apply/check password policy only when the user changes their password. What it means is, that users that existed prior to the policy being applied will not have their password expire, etc.
I know that checking the password strength after it has already been set that is “kind of hard”. But the least you can do is set the passwords to expire according to the policy. In the case no expiry time exists it should be set to all users, to make the device actually comply with the policy that it has configured. So, in my opinion that is F5’s oversight.
So in order to actually enforce the policy you must take care that your users change their passwords after the password policy changes to actually apply them.