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I read it as saying the vested balance from prior to the break is kept separate from the new after-rehire balances until the participant becomes 100% vested. It addresses rehire after the non-vested portion has been forfeited, so any remaining balance at rehire would be vested. If they are not fully vested, new money would be subject to the vesting schedule, but the old vested balance would remain vested. I don't see anything there that would let someone with >5 yrs BIS repay a distribution and get forfeitures restored.

An example from the clip in the OP: Participant has $10,000 in Match, is 60% vested and terminates in 2010, leaves money in plan. (assume no earnings) At the end of 2015, $4,000 is forfeited per the 5 BIS rule. Account balance is $6,000. Person is rehired in late 2016. The $6,000 must be kept separate, as it's fully vested at the moment. Any new match is still subject to the vesting schedule, starting at 60% in 2016. After 2018, the accounts can be recombined (assuming participant accrued a YOS for vesting each year). This has nothing to do with buyback of forfeitures, as others have said.