It sure can.
There is a section of the config dedicated to handling it: "Wipe and plugin update settings"
"Wipe all player data files [setting true will ignore all below settings that handle data reset]?" - Wipes everything (including prestige). Set to false if you want to handle wiping differently.
"How should we handle xp, levels and skills when the server wipes [None, Reset, Refund]?"
- None: nothing will happen
- Refund: will remove the buffs and refund the skill points
- Reset will reset the level,. xp and buffs (but not prestige)
"Should we wipe prestige levels?" - handles prestige wiping.
There are number of other options to handle xp debt, respect multiplier etc.