The password expiry period starts 1 month after the user's Start Date. If the password expiry period is set to Quarterly, then the first quarter starts after a month from the user's start date that is set in the user's profile. For example,
 
User's Start Date: November 03, 2010
Password expiry period: Quarterly
Next password change prompt: March 04, 2010
 
Note: This applies even if the administrator or user changes a password that is not yet due to expire.