Available methods in Synchronize Login after password change

I'm currently running NAV 2009 R2 RTC, and have the following question with regards to Synchronizing Windows Login.

My current test environment is setup so that I have 2 tier configuration.
Terminal Server (TS):
- RTC
Database Server (DB):
- NAV Server
- SQL Server
*The servers are not part of any Domain

In the above environment, I took the following steps.
1. Create Local User named "Test1", in both TS and DB.
2. Add the user "Test1" in Administrator Group
3. Using Classic Client on DB, add the user "Test1" as one of the Windows Login
4. Process "Synchronize Login"
5. Login to NAV RTC using the account "Test1" (from TS), and confirm that I can login without any issue.
6. Change the User Login Password for "Test1" to different one.
7. Re-login to NAV RTC using the account "Test1" (from TS).
8. Now I cannot login to RTC.

I understand that if I change the user password on the DB and process the "Synchronize Login" from the Classic Client, but I wanted to know if there were any easier way around.

The only reason why I'm asking is because one of my customer wants to setup a Local Security Policy that the users are required to change the Password every 35 days, and whether NAV was capable of handling such setup, or not.

If the customer has to run the "Synchronize Login" every time the user's password changes, then it would be very inefficient.

Please let me know if you ever encountered this and how you solved this issue.

Thank you.

Kenji