Edumara, your tip is well noted. Should Tim's trick not work, I will resort to digging up the 10.8 installer and giving your advice a try. But for now, the Terminal is much more handy! :-)
Tim, here's what I did in the Terminal just now:
James-iMac:~ james$ cd Desktop
James-iMac:Desktop james$ mkdir time-fix
James-iMac:Desktop james$ cd time-fix
James-iMac:time-fix james$ cp /var/db/ntp.drift ntp.drift.backup
James-iMac:time-fix james$ echo '-25.686' > ntp.drift
James-iMac:time-fix james$ sudo cp ntp.drift /var/db/ntp.drift
Password:
James-iMac:time-fix james$ sudo killall ntpd
James-iMac:time-fix james$ sudo killall pacemaker
James-iMac:time-fix james$ sudo /usr/libexec/pacemaker -v
Feb 5 10:10:24 James-iMac.local pacemaker[70912] <Info>: power status check: using external power
Feb 5 10:10:24 James-iMac.local pacemaker[70912] <Info>: created file monitor for /var/db/ntp.drift
Feb 5 10:10:24 James-iMac.local pacemaker[70912] <Info>: interval = 1 seconds, tolerance = 0.000000, drift = -25.686000
Feb 5 10:10:25 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue 0.000000 delta -25
Feb 5 10:10:26 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.686000 delta -26
Feb 5 10:10:27 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.372000 delta -26
Feb 5 10:10:28 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.058000 delta -25
Feb 5 10:10:29 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.744000 delta -26
Feb 5 10:10:29 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.430000 delta -26
Feb 5 10:10:31 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.116000 delta -25
Feb 5 10:10:32 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.802000 delta -26
Feb 5 10:10:33 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.488000 delta -26
Feb 5 10:10:34 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.174000 delta -25
Feb 5 10:10:35 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.860000 delta -26
Feb 5 10:10:36 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.546000 delta -26
Feb 5 10:10:37 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.232000 delta -25
Feb 5 10:10:38 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.918000 delta -26
Feb 5 10:10:39 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.604000 delta -26
Feb 5 10:10:40 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.290000 delta -25
Feb 5 10:10:41 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.976000 delta -26
Feb 5 10:10:42 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.662000 delta -26
Feb 5 10:10:43 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.348000 delta -26
Feb 5 10:10:44 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.034000 delta -25
Feb 5 10:10:45 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.720000 delta -26
Feb 5 10:10:46 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.406000 delta -26
Feb 5 10:10:47 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.092000 delta -25
Feb 5 10:10:48 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.778000 delta -26
Feb 5 10:10:49 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.464000 delta -26
Feb 5 10:10:50 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.150000 delta -25
Feb 5 10:10:51 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.836000 delta -26
Feb 5 10:10:52 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.522000 delta -26
Feb 5 10:10:53 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.208000 delta -25
Feb 5 10:10:54 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.894000 delta -26
Feb 5 10:10:55 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.580000 delta -26
Feb 5 10:10:55 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.266000 delta -25
Feb 5 10:10:57 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.952000 delta -26
Feb 5 10:10:58 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.638000 delta -26
Feb 5 10:10:59 James-iMac.local pacemaker[70912] <Debug>: drift -25.686000 residue -0.324000 delta -26
^CJames-iMac:time-fix james$
So at this point, I guess I just need to give it a few days and then see if there is any drift.
In the meantime, I am baffled by all this. It makes no sense whatsoever why my advanced iMac's clock (way more advanced than a regular clock) should drift so badly in the first place. I mean really. Losing 5 minutes in about a week's time? That's some serious drift!