When the user whose password has expired logs in via console or ssh he/she has to change the password during the login process. During this process, not passwd(1) is called, but either login(1) or sshd(8) are involved and thus the password policy from /etc/pam.d/passwd is ignored.
Adding these two lines to example config files should help newbies figure out how to enforce password policy for users changing their passwords due to expiration.