RADIUS Doesn't Encrypt Username ?

I had always assumed [incorrectly apparently] that "encrypts the password" meant the username and password. But, running Wireshark I came upon this (I trimmed the actual wireshark output to remove redundant information and clean it up):

Ethernet II
	Destination 			00 26 22 6e 60 d9
	Source 				00 16 46 a2 f7 13
	Type 				0x0800 (IP)
	
Internet Protocol
	Version 			4
	Header Length 			20 bytes
	Differentiated Services Field 	0x00
	Total Length 			119
	Identification 			0x0302
	Flags  				0x00
	Fragment Offset  		0
	TTL  				255
	Protocol  			17 (UDP)
	Header Checksum  		0x5F50
	Source  			172.16.0.1
	Destination  			172.16.1.2
	
User Datagram Protocol
	Source Port  			1645
	Destination Port 		1645
	Length  			99
	Checksum			0x7bbd


RADIUS
	Code				1 (Access-Request)
	Packet Identifier		0x1B
	Length				91
	Authenticator			12a32ec1a621b268a969c9362cdcdfd6
	Attribute-Value Pairs
[COLOR=#ff0000]	 1 (User-Name)			Administrator[/COLOR]
[COLOR=#ff0000]	 2 (User-Password)		Encrypted[/COLOR]
	 5 (NAS-Port)			194
	87 (NAS-Port-Id)		tty194
	61 (NAS-Port-Type)		5 (Virtual)
	31 (Calling-Station-Id)		172.16.0.1
	 4 (NAS-IP-Address)		172.16.0.1