Pausing simulation in PIE does not pause looped timers on the Server when players is set to more than 1

Pausing simulation in PIE does not pause looped timers on the Server when players is set to more than 1. The Client pauses the timer as expected. With only one player, timers are paused as expected.

Note: AnswerHub link lists a number of potential bugs, and this was discovered while investigating other problems.

This is NOT a regression. Reproduced in 4.9.2 binary, 4.10.2 binary, and 4.12 (//UE4/Dev-Main at CL 2855802)

1. Open a new blank project
2. Create a new Actor Blueprint
3. Add a Custom Event
4. Custom Event > Print String "Hello"
5. Event Begin Play > Set Timer by Event (previously created Custom Event, 2.0 seconds, looping=true)
6. Drop the Actor BP in the level
7. PIE with players set to 2
8. Pause the simulation after the timer begins

Result:
The Client stops printing "Hello", but the Server continues.

Expected:
Paused simulation pauses timers on both Server and Client.

4.11 P4 Spawned Actors not Replicating