ntpd guarantees (under the default settings now, though that's new... you can ask it to shoot you in the head, but I don't recommend that you use firearms in this way) that the clock will never go backwards. You're thinking of nptdate, a utility provided with ntpd, but which is only ever supposed to run at system initialization time to get the time close enough for ntpd to take over.
If ntpd finds that the clock is ahead, it will slow the ticks, allowing it to gradually drift back to the correct time.
The system time should NEVER move backwards. Ever. Relying on the system time not moving backwards is not unreasonable for trivialities like how long you wait for a keystroke. If you reset your system time, you might have to hit a key to get vim to wake up. Shucks.