/etc/default/rcS: UTC=no is being ignored with systemd

[Cavsfan]

This bug is identical to https://bugs.launchpad.net/ubuntu/+source/util-linux/+bug/1377698
except it only happens when booting with systemd.

Even with UTC=no, Ubuntu stores the time as UTC at shutdown. But since UTC=no, it expects the time as local, thus applies no timezone correction, and the time is 4 hours behind for those in US EST time.
Also the ability to change get time from the internet is greyed out.

Booting with Upstart everything is good.

This happens every time I boot Utopic with systemd.

ProblemType: Bug
DistroRelease: Ubuntu 14.10
Package: util-linux 2.25.1-3ubuntu2
ProcVersionSignature: Ubuntu 3.16.0-22.29-generic 3.16.4
Uname: Linux 3.16.0-22-generic x86_64
NonfreeKernelModules: nvidia
ApportVersion: 2.14.7-0ubuntu7
Architecture: amd64
CurrentDesktop: Unity
Date: Thu Oct 16 11:33:44 2014
InstallationDate: Installed on 2014-03-10 (220 days ago)
InstallationMedia: Ubuntu 14.04 LTS "Trusty Tahr" - Alpha amd64 (20140310)
SourcePackage: util-linux
UpgradeStatus: No upgrade log present (probably fresh install)

[Cavsfan (cavsfan)]

I also have Utopic Mate Remix installed and it was also happening to this system when booting with systemd too but that seems to be intermittent.

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.

[Cavsfan (cavsfan)]

I booted using systemd with Gnome Flashback (with Compiz).
Today I got the same 4 hours behind US ET.
I had to enter sudo ntpdate ntp.ubuntu.com to correct the time.

[Cavsfan (cavsfan)]

This is still broken on my system I boot and I see a message systemd-fcsk detects that the system time is 4 hours behind due probably to a hardware bios setting and it says it corrected it but when it comes up it is still 4 hours behind.

[Cavsfan (cavsfan)]

I booted into Vivid with systemd and the time is ahead by 5 hours exactly.
I thought it was fixed with yesterday's update but I guess not.
cavsfan@cavsfan-MS-7529:~$ apt-cache policy systemd
systemd:
  Installed: 215-6ubuntu1
  Candidate: 215-6ubuntu1