Office 365 and Server 2012R2 Essentials role, PasswordNeverExpires setting

Hi

We have Office 365 E3 and Server 2012R2 Essentials that are integrated together. Integration meaning integration through Essentials Dashboard so passwords and user name and so on syncs.

But what happens if I set the passwords to not to expire from GPO. Does that setting sync to O365 or should I set the PasswordNeverExpires to O365 separately?