MSS calls a user-replaceable module, dfhucryp.gnt in location install-dir\base\bin , to perform encryption and decryption of user passwords. The installed module does not actually perform any encryption; that is, the encrypted password is the same as the unencrypted password. You can replace this module with one that implements a password encryption and decryption strategy appropriate for your site.
An example module, dfhucry1.gnt, which implements a simple encryption and decryption scheme is supplied. Its source (.cbl) form is provided in the directory install-dir\base\source\ folder. It uses the number of 1 bits in the user ID as a shift count and a pair of encipher and decipher tables.