deferrals not stopped after hardship

[wsp]

Maybe I read this wrong in the the ERISA outline book but the correction to this is not a distribution, but rather done via a negative contribution in the payroll and a forfeiture of the match. Is that correct? If so, what's to stop the participant who doesn't max out his deferrals anyways, from simply raising his deferral percentage for a payroll to turn around and get the money back into the plan? If the plan document allows for deferral changes on a payroll by payroll basis, is this a viable option?

Also, I read nothing about income...do I return income in this correction? Seems silly to do if they are going to put it right back into the plan. But, not so silly if they don't put it back in given the gains the participant had.