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By default the new password field under user preferences screen remains read only.You can make it editable by following below steps :-
1) Go to Admin->Server Configuration->Enterprises->Profile Configuration view.
2) If you are not using any 3rd party security adapter like LDAP or ADSI then query in field "Alias" by "DBSecAdpt",if yes then search for corresponding adapters.
3) In the 3rd applet "Profile Parameters" under field "Name" search for "Propagate Change".For this particular record change the value under field "Value" to "True".
4) Bounce siebel server.
5) Now check under user preferences->profile.