Why is the NTP offset value too high on Red Hat Enterprise Linux 5.6?

Issue

• Why is the NTP offset value too high on Red Hat Enterprise Linux 5.6?

root@ser]cat /etc/ntp.conf  
restrict default nomodify notrap noquery  
restrict 127.0.0.1  
server 192.168.34.65  
driftfile /var/lib/ntp/drift  
broadcastdelay 0.008

root@ser[/var/lib/ntp]ntpq -pn  
     remote           refid      st t when poll reach   delay   offset  jitter  
==========================================================  
192.168.34.65   .GPS.           1 u   49   64    3    0.001  326.185 12146.1

• Stopping and starting the daemon fixes it temporarily, but it quickly loses time again.