Motion controllers appear misaligned when using the oculus touch controllers through steam VR

Touch controllers for oculus appear misaligned when using the Oculus via Steam VR. The controllers in game do not line up with the position provided by steam VR.

1. Make sure that the oculus is hooked up and turned on
2. Make sure that Steam VR is on
3. Open a New VR template project
4. Disable the Oculus plugin
5. Play in VR
6. Pull up the Steam VR overlay

Result: The Controllers appear offset (see image for example)
Expected: The controllers would appear to be aligned in the same spot as the controllers in game