Just installed a fresh copy of Xubuntu 14.04.1 and I also have that
problem. In addition after wakeup the screen stays black after the
password dialog. I don't mind, because I wouldn't want to go into sleep
mode anyways. So I hope this can be fixed properly any time soon.

"This is a MAJOR inconvenience for an upgrade of an LTS."

Yes, for me I don't mind and I know things like this happen, but for
normal users that may be a very disappointing experience.

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https://bugs.launchpad.net/bugs/1307545

Title:
  Power Manager settings are ignored when closing laptop lid

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