FIX - Windows 7 Password Expiry notification balloon not showing

We recently came across a situation where in Windows 7 the Password Expiry notification toast was not appearing near the task bar.

The only indication to the users that their password was about to expire was the double key icon in the task bar.

Of course that is if they had selected the option to always show all icons and notifications in the task bar.

Increasing the notification time to the maximum of 5 minutes did not help either.

The problem was that for some reason the GPO setting "Turn off all balloon notifications" needed to be changed from "Not Configured" to "Disabled". 

According to the setting description we should not have to do this but setting this option explicitely fixed our issue.