I know it's a long time, but I'm cleaning up old NTP bugs atm.
I checked and for any recent release I could verify that the setting is 
persistent and also the time is checked.
Note: the function is documented as only updating time once on login of your 
user anyway, it is not meant to retain a good time over a longer time (that 
would be real ntp then).
Since it is "no more" abug for any supported release setting to invalid.

** Changed in: ntp (Ubuntu)
       Status: Confirmed => Invalid

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https://bugs.launchpad.net/bugs/374717

Title:
  ntp in kubuntu jaunty does not configure

Status in ntp package in Ubuntu:
  Invalid

Bug description:
  NTP will not set or configure properly in Kubuntu Jaunty System
  Setting Panel when set to "Set date and Time automatically", and using
  any of the preselectable sources. On initial install when selecting
  ntp it does not offer to automatically setup ntp. In this case I
  manually installed ntp and then went back and reselected to set date
  and time automatically from the system panel and I get the below
  kernel dump --

  May 11 00:30:19 davemc-desktop kernel: [   84.556029] Clocksource tsc
  unstable (delta = -291275066 ns)

  This does not show wether it is syncing, but I do not think so as it
  is so off base.

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