As far as I know, VMS still use local time.
VMS has had time zones and automatic daylight savings time adjustment since 7.3 or so.
Actually, when the name changed from VMS to OpenVMS it was because DEC made some
attempts to add Posix compatibility. That brought in a whole bunch of concepts, including
time zones. I believe that's also when we got STREAM-LF and STREAM-CR file
organization too.
Bob