1. Short title This Act may be cited as the Fair Return for Employees on Their Initial Retirement Earned Act of 2017 or the Fair RETIRE Act . 2. Sense of Congress It is the sense of Congress that— (1) it is in the best national and homeland security interests of the United States for Federal agencies to retain the specialized knowledge and experience of individuals who suffer an injury or illness while serving in a covered position (as defined under the amendments made by this Act); and (2) in developing regulations to carry out this Act and the amendments made by this Act, the Director of the Office of Personnel Management and the Secretary of Labor should ensure, to the greatest extent possible, that the reappointment of an individual to a position in the civil service that is not a covered position is with the same Federal agency, in the same geographic location, and at a level of pay commensurate to the position which the individual held immediately prior to such injury or illness. 3. Retirement for certain employees (a) CSRS Section 8336(c) of title 5, United States Code, is amended by adding at the end the following: (3) (A) In this paragraph— (i) the term covered individual means an individual covered under this subchapter who— (I) is performing service in a covered position; (II) has performed not less than 3 years of creditable service in a covered position; (III) while in the performance of the duties of the individual, becomes ill or is injured before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), (m), or (n), as applicable; (IV) because of the illness or injury described in subclause (III), is permanently unable to continue service in a covered position, determined in accordance with regulations promulgated by the Director of the Office of Personnel Management, in consultation with the Secretary of Labor; and (V) is appointed to a position in the civil service that is not a covered position