Hardship Distributions from Prevailing Wage Contributions

[Guest kamp]

Can a Davis Bacon plan allow hardship distributions from prevailing wage $ if the document states that hardships are available from all sources?

This plan allows for prevailing wage contributions to be counted as a QNEC and to allow for profit sharing offset. To my knowledge the plan never used the prevailing wage as a QNEC because it is a Safe Harbor Plan, however, it has used prevailing wage to offset both Safe Harbor and PS contributions.

The administrator wants to amend the document to remove the option to use the prevailing wage as a QNEC and then allow hardships from all sources. Is this allowed?