This policy setting allows you to prevent users from resetting their password to one of their previously set passwords. This ...

"This policy setting allows you to prevent users from resetting their password to one of their previously set passwords. This policy setting is best used together with the "Password expiration" policy setting.  If you configure this policy setting, then you can set the number of passwords that the device remembers. The user is not allowed to create a new password that matches any of these previous passwords.   If you disable this policy setting, then users are able to re-use any of their previous passwords.  If you do not configure this policy setting, then existing password-related settings on the device remain in effect."
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