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This question has been answered a gazillion times in this forum. Have you tried searching for past threads?

The following is my understanding, based on typical plan provisions. The actual plan document may result in different conclusions. First question should probably be "what is the accrued benefit after rehire?" As I recall, if the person terminated with vesting and was not paid out (they weren't, were they?), the service etc. must be bridged. You don't say what kind of formula the plan has, but suppose that it is a vanilla 1% of final average earnings per year of service defined benefit plan. Suppose that when the participant left in 1985, average earnings were $20,000. The accrued benefit would have been 1% X 5 X $20,000 / 12, or a monthly benefit of $83.33, of which half was vested. Upon rehire in 2005, suppose that the person's pay is $35,000. By 2010, the average earnings will be $35,000. By 2015, there will be 15 years of service, and the accrued benefit would be 1% X 15 X $35,000 /12, or a monthly benefit of $437.50. It is possible that the non-vested half of the $83.33 may have been forfeited after a 5-year break (NOT due to rule of parity - in the absence of a complete distribution of the vested benefit, service for a rehired participant who had attained some vesting will always be fully bridged upon rehire) if the plan contains such a provision. On the day the participant is rehired and rejoins the plan, the vested percentage goes immediately to 100% due to the intervening plan amendment. Unless each piece of accrual is tied to a specific period of service, when a vested participant is rehired, you recalculate the accrued benefit based on updated service and earnings. The pre-break accrual is not frozen, it is recalculated when there is a measurable change in service and/or earnings.

If you missed it, so did I. And I don't think we both did.