How to create custom password policy - Policy based management

Are you referring to Windows authentication? If so, the AD administrator controls how long the password reset must occur. With PBM you can, however, make sure that the account you add to the server has password expiration enabled as well as enforcing your AD's password policy. Here is the T-SQL to create this condition:

Declare @condition_id int
EXEC msdb.dbo.sp_syspolicy_add_condition 
    @name=N'Password Policy Enforced', @description=N'', @facet=N'Login', 
    @expression=N'<Operator>
  <TypeClass>Bool</TypeClass>
  <OpType>AND</OpType>
  <Count>2</Count>
  <Operator>
    <TypeClass>Bool</TypeClass>
    <OpType>EQ</OpType>
    <Count>2</Count>
    <Attribute>
      <TypeClass>Bool</TypeClass>
      <Name>PasswordExpirationEnabled</Name>
    </Attribute>
    <Function>
      <TypeClass>Bool</TypeClass>
      <FunctionType>True</FunctionType>
      <ReturnType>Bool</ReturnType>
      <Count>0</Count>
    </Function>
  </Operator>
  <Operator>
    <TypeClass>Bool</TypeClass>
    <OpType>EQ</OpType>
    <Count>2</Count>
    <Attribute>
      <TypeClass>Bool</TypeClass>
      <Name>PasswordPolicyEnforced</Name>
    </Attribute>
    <Function>
      <TypeClass>Bool</TypeClass>
      <FunctionType>True</FunctionType>
      <ReturnType>Bool</ReturnType>
      <Count>0</Count>
    </Function>
  </Operator>
</Operator>', @is_name_condition=0, @obj_name=N'', 
@condition_id=@condition_id OUTPUT

Select @condition_id

GO

You can run this T-SQL and it will create the condition. Once its created, you can open it in the GUI (the condition will appear in the conditions folder under Policy-Based Management node in SSMS).

If you'd like a comprehensive resource on PBM, check out the book Pro SQL Server 2008 Policy-Based Management (I co-authored it).

Update to this post: You can use extended properties on sql logins to do what you were asking for here. I wrote up a post last night about expiring databases but you can easily change the condition to look at extended properties on logins as well: http://sqlchicken.com/2011/10/expiring-databases-and-policy-based-management/

FYI I wrote up a blog post summarizing this setup, hope it helps: http://sqlchicken.com/2011/05/policy-based-management-and-local-password-policy/

Where are we setting the logic saying password expires in 90 days?...sorry for asking like this... I am new bee to PBM

Ok I think i might of explained my problem wrong.Is it possible to create a custom policy? If i check the policy when creating the account it uses my windows password policy but i do not want that to happen for the sql logins. Having a separate custom policy for the sql logins would be helpful.