This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

68376 

Vol. 79, No. 221 

Monday, November 17, 2014 

1Public Law 102–552, 106 Stat. 4131 (1992). 

2See FCA Policy Statement ‘‘Cooperative 

Operating Philosophy—Serving the Members of 

Farm Credit System Institutions’’ (FCA–PS–80), 

dated October 14, 2010. 

FARM CREDIT ADMINISTRATION 

12 CFR Part 620 

RIN 3052–AD02 

Disclosure to Shareholders; Pension 

Benefit Disclosures 

AGENCY: Farm Credit Administration. 

ACTION: Proposed rule. 

SUMMARY: The Farm Credit 

Administration (FCA, we or our) is 

proposing to amend our regulations 

related to Farm Credit System (System) 

bank and association disclosures to 

shareholders and investors. The 

proposed rule would exclude certain 

employees and their associated 

compensation amounts from the 

reporting requirement in our 

regulations. Under the proposed rule, 

there would be no reporting 

requirement for employees that are not 

senior officers and would not otherwise 

be considered ‘‘highly compensated 

employees’’ but for payments related to 

or change(s) in value of the employee’s 

qualified pension plan. Under the 

proposed rule, such employees’ pension 

plans must have been available to all 

similarly situated employees on the 

same basis. 

DATES: Submit comments on or before 

December 17, 2014. 

ADDRESSES: We offer a variety of 

methods for you to submit your 

comments. For accuracy and efficiency 

reasons, we encourage commenters to 

submit comments by email or through 

the FCA’s Web site. As facsimiles (fax) 

are difficult for us to process and 

achieve compliance with section 508 of 

the Rehabilitation Act, we no longer 

accept comments submitted by fax. 

Regardless of the method you use, 

please do not submit your comment 

multiple times via different methods. 

You may submit comments by any of 

the following methods: 

• Email: Send us an email at regcomm@fca.gov. 

• FCA Web site: http://www.fca.gov. 

Select ‘‘Public Commenters,’’ then 

‘‘Public Comments,’’ and follow the 

directions for ‘‘Submitting a Comment.’’ 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Barry F. Mardock, Deputy 

Director, Office of Regulatory Policy, 

Farm Credit Administration, 1501 Farm 

Credit Drive, McLean, VA 22102–5090. 

You may review copies of all 

comments we receive at our office in 

McLean, Virginia, or from our Web site 

at http://www.fca.gov. Once you are on 

the Web site, select ‘‘Public 

Commenters,’’ then ‘‘Public 

Comments,’’ and follow the directions 

for ‘‘Reading Submitted Public 

Comments.’’ We will show your 

comments as submitted, including any 

supporting data you provide, but for 

technical reasons we may omit items 

such as logos and special characters. 

Identifying information that you 

provide, such as phone numbers and 

addresses, will be publicly available. 

However, we will attempt to remove 

email addresses to help reduce Internet 

spam. 

FOR FURTHER INFORMATION CONTACT: 

Michael T. Wilson, Policy Analyst, 

Office of Regulatory Policy, Farm 

Credit Administration, McLean, VA 

22102–5090, (703) 883–4124, TTY 

(703) 883–4056, Or 

Jeff Pienta, Senior Attorney, Office of 

General Counsel, Farm Credit 

Administration, McLean, VA 22102– 

5090, (703) 883–4020, TTY (703) 883– 

4056. 

SUPPLEMENTARY INFORMATION: 

I. Objective 

The objective of this proposed rule is 

to improve the quality of disclosure 

information shareholders receive that is 

related to senior officer and other highly 

compensated employee compensation. 

II. Background 

Congress explained in section 514 of 

the Farm Credit Banks and Associations 

Safety and Soundness Act of 1992 (1992 

Act) 1 that disclosures of financial 

information and compensation paid to 

senior officers, among other disclosures, 

provide System shareholders with 

information necessary to better manage 

their institution and make informed 

decisions regarding the operation of 

their institution. In addition, the FCA 

Board declared its commitment to 

support the cooperative business model 

and structure by encouraging memberborrowers to participate in the 

management, control, and ownership of 

their institutions.2 Providing memberborrowers with transparent and 

complete disclosures regarding the 

compensation of senior officers and 

certain other highly compensated 

employees is essential to fostering an 

environment wherein memberborrowers can do so effectively. 

With this as one of our objectives, we 

issued a final rule on October 3, 2012, 

that enhanced disclosure of 

compensation and other related topics. 

III. Analysis 

Section 620.6(c)(2) requires System 

banks and associations to disclose the 

number of senior officers and their 

compensation for the last 3 completed 

fiscal years. For the purposes of this 

reporting requirement only, existing 

§ 620.6(c)(2)(i) essentially extends the 

regulatory definition of ‘‘senior officers’’ 

to include any employee whose 

compensation level was among the five 

highest paid during the reporting 

period. The intent of this extension was 

to ensure that System banks and 

associations provide shareholders with 

necessary compensation information on 

highly compensated employees, even 

though such employees did not 

necessarily fall within the regulatory 

definition of ‘‘senior officer’’ during the 

reporting period. 

On the other hand, the intent of this 

extension was not to have System banks 

and associations provide shareholders 

with compensation information 

regarding employees who would only 

reach the ‘‘highly compensated 

employee’’ threshold solely because of 

payments related to or change(s) in 

value of a qualified pension plan that 

was available to all employees on the 

same basis at the time they joined the 

plan. We believe that application of the 

existing rule could create such an 

unintended effect and reduce the 

effectiveness of the disclosure. For 

instance, the existing requirement could 

result in a mid-level employee being 

considered a top five highest paid 

employees and thus being considered a 

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Federal Register / Vol. 79, No. 221 / Monday, November 17, 2014 / Proposed Rules 68377 

‘‘highly compensated employee’’ solely 

because of a one-time or lump sum 

pension payment that occurred at the 

end of their career. Such a result would 

necessarily cause an otherwise highly 

compensated employee who is not a 

‘‘senior officer’’ to fall out of the top five 

highest compensated employees for that 

reporting period, and thus, to not be 

included in the disclosure required 

under § 620.6(c)(2)(i). 

This proposed rule would improve 

the quality of the disclosure required 

under existing § 620.6(c)(2)(i) by 

eliminating the potential for unintended 

results such as the one outlined above. 

Therefore, we propose to amend 

§ 620.6(c)(2)(i) to exclude any such 

employee from the Compensation Table 

if the employee would be considered 

highly compensated solely because of 

payments related to or change(s) in 

value of the employee’s qualified 

pension plan provided that the plan was 

available to all similarly situated 

employees on the same basis at the time 

the employee joined the plan. 

IV. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), the FCA hereby certifies that the 

proposed rule would not have a 

significant economic impact on a 

substantial number of small entities. 

Each of the banks in the Farm Credit 

System, considered together with its 

affiliated associations, has assets and 

annual income in excess of the amounts 

that would qualify them as small 

entities. Therefore, Farm Credit System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

List of Subjects in 12 CFR Part 620 

Accounting, Agriculture, Banks, 

banking, Reporting and recordkeeping 

requirements, Rural areas. 

For the reasons stated in the 

preamble, part 620 of chapter VI, title 12 

of the Code of Federal Regulations is 

proposed to be amended as follows: 

PART 620—DISCLOSURE TO 

SHAREHOLDERS 

■ 1. The authority citation for part 620 

continues to read as follows: 

Authority: Secs. 4.3, 4.3A, 4.19, 5.9, 5.19 

of the Farm Credit Act (12 U.S.C. 2154, 

2154a, 2207, 2243, 2252, 2254); sec. 424 of 

Pub. L. 100–233, 101 Stat. 1568, 1656, sec. 

514 of Pub. L. 102–552, 106 Stat. 4102. 

■ 2. Section 620.6(c)(2)(i) is revised to 

read as follows: 

§ 620.6 Disclosures in the annual report to 

shareholders relating to directors and 

senior officers. 

* * * * * 

(c) * * * 

(2) * * * 

(i) If applicable, when any employee 

who is not a senior officer has annual 

compensation at a level that is among 

the five highest paid by the institution 

during the reporting period, include the 

highly compensated employee(s) in the 

aggregate number and amount of 

compensation reported in the 

Compensation Table. However, exclude 

any such employee from the 

Compensation Table if the employee 

would be considered highly 

compensated solely because of 

payments related to or change(s) in 

value of the employee’s qualified 

pension plan provided that the plan was 

available to all similarly situated 

employees on the same basis at the time 

the employee joined the plan. 

* * * * * 

Dated: November 12, 2014. 

Dale L. Aultman, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 2014–27192 Filed 11–14–14; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0227; Directorate 

Identifier 2013–NM–211–AD] 

RIN 2120–AA64 

Airworthiness Directives Lockheed 

Martin Corporation/Lockheed Martin 

Aeronautics Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Supplemental notice of 

proposed rulemaking (NPRM); 

reopening of comment period. 

SUMMARY: We are revising an earlier 

proposed airworthiness directive (AD) 

that proposed to supersede AD 95–26– 

11, for all Lockheed Martin Corporation/ 

Lockheed Martin Aeronautics Company 

Model L–1011 series airplanes. AD 95– 

26–11 currently requires repetitive 

inspections to detect cracking of the 

fittings that attach the aft pressure 

bulkhead to the fuselage stringers, 

repetitive inspections to detect cracking 

of the fittings and of the splice tab of the 

aft pressure bulkhead, and corrective 

actions if necessary. The NPRM 

proposed to reduce the compliance 

time; add inspections for cracking of 

certain aft fuselage skin panels; add a 

structural modification; and also add a 

post-modification inspection program. 

The NPRM was prompted by a 

determination that the fittings at stringer 

attachments to the upper region of the 

aft pressure bulkhead are subject to 

widespread fatigue damage (WFD), 

which could result in cracking in the aft 

pressure bulkhead. This action revises 

the NPRM by reducing the poststructural modification repetitive 

inspection interval. We are proposing 

this supplemental NPRM (SNPRM) to 

prevent simultaneous failure of multiple 

stringer end fittings through fatigue 

cracking at the aft pressure bulkhead, 

which could lead to rapid 

decompression of the airplane. Since 

this action imposes an additional 

burden over that proposed in the NPRM, 

we are reopening the comment period to 

allow the public the chance to comment 

on these proposed changes. 

DATES: We must receive comments on 

this SNPRM by January 2, 2015. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this AD, contact Lockheed Martin 

Corporation/Lockheed Martin 

Aeronautics Company, L1011 Technical 

Support Center, Dept. 6A4M, Zone 

0579, 86 South Cobb Drive, Marietta, 

GA 30063–0579; telephone 770–494– 

5444; fax 770–494–5445; email 

L1011.support@lmco.com; Internet 

http://www.lockheedmartin.com/ams/

tools/TechPubs.html. You may view this 

referenced service information at the 

FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. 

For information on the availability of 

this material at the FAA, call 425–227– 

1221. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

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