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/usr/share/sendmail/examples/sasl/saslpasswd.conf.1 is in sendmail-base 8.15.2-3.

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#Currently configurable parameters:
#- srvtab (for KERBEROS_V4): [/etc/srvtab] path
#        where to find the srvtab
#
#- pwcheck_method: [PAM] one of {PAM, kerberos_v4, passwd, shadow, sasldb}
#        how to check plaintext passwords.
#
#- auto_transition: [false]
#        if true, automatically add secrets to the secret database when
#        PLAIN or check_password is used, so in the future the user can
#        use the more secure mechanisms.
#
#*** For a more detailed guide on configuring SASL, please look at
#doc/sysadmin.html.
#
auto_transition: true
pwcheck_method: sasldb