Create custom password settings for AD users server 2012 R2

Start-> Run-> adsiedit.msc
Locate CN=System -> CN=Password Settings Container 
Create new Object:
In the Create Object dialog box, under Select a class, click msDS-PasswordSetting
Value, type the name of the new PSO

Example values:
msDS-PasswordSettingsPrecedence - 10
msDS-PasswordReversibleEncryptionEnabled - FALSE
msDS-PasswordHistoryLength - 5
msDS-PasswordComplexityEnabled - TRUE
msDS-MinimumPasswordLength - 8
msDS-MinimumPasswordAge - 1:00:00:00 (1 day)
msDS-MaximumPasswordAge - 60:00:00:00 (60 days)
msDS-LockoutThreshold - 10
msDS-LockoutObservationWindow - 0:00:60:00 (60 minutes)
msDS-LockoutDuration - 0:00:60:00 (60 minutes)
msDS-PSOAppliesTo - “CN=u1,CN=Users,DC=DC1,DC=contoso,DC=com”

To disable account lockout policies, assign the msDS-LockoutThreshold attribute the value of 0.

Source:  technet.microsoft.com