It appears that the time service only uses CMOS when there's no other source available.
How to fix this:
In regedit, verify that HKLM\CurrentControlSet\Services\W32Time\Parameters\Type is set to "NTP" and then enter the following on a command line:
w32tm /config /manualpeerlist:"0.pool.ntp.org 1.pool.ntp.org 2.pool.ntp.org",0x8 /syncfromflags:MANUAL
w32tm /config /update
net stop w32time
net start w32time
w32tm /resync /nowait
w32tm /tz - Display current time zone.