You can delete any password policy, except the Default Password Policy and the Default Root User Policy, from the directory when it is no longer needed.
In practice, first check the users who have the password policy you plan to delete, move them to a new password policy, and then remove the old password policy. If a password policy is deleted, any users who have a deleted password policy continue to have the ds-pwd-password-policy-dn pointing to the old password policy. The server returns an error when any requests to access the entry occur.
$ dsconfig -D "cn=directory manager" -w password -n \ delete-password-policy --policy-name "Temp Password Policy"