In 1995 there were changes made in pension administration to ensure that new policies taken out to take SERPS contributions ensured that key information was provided and that the risks as well as the potential benefits were fully and adequately explained.
However before 1995 there was little or no regulation of the methods used to sell policies, and no obligation to ensure that the risks were fully explained before a private pension was purchased.
Many life companies are now using some initiative and are contacting all of their policy holders and are warning that pension funds could be facing a shortfall, and advising customers to opt back into the SERPS scheme. In a few cases where there has clearly been mis-selling, nominal compensation cheques are being send to those affected, which if cashed acts as full and final settlement for any mis-sale episode.
It goes without saying that the fact that these companies take such steps, demonstrates the extent of the problems that they are now faced with. Whilst a compensation cheque of £500 is generally well received by the policy holder, it is only a small fraction of the compensation that a victim of mis-selling is legitimately entitled to.
If you have received a letter advising you to opt back into SERPS or if you have received a cheque for compensation it is vital that you seek professional advice and have your case thoroughly assessed to ensure that you are receiving your full entitlement of compensation and that you are not being short changed twice for the same policy.

If you think you have been a victim of mis-selling there is nothing that can be done to turn the clock back, and reinvest your contributions back into SERPS.
You should certainly seek professional financial advice as to whether you should opt back into the SERPS scheme, and this will depend on the performance of your pension fund during the period of contracting out. You will be able to move your contracted out pension back into the SERPS scheme to prevent any further potential losses.
It is unfortunate, however you will be unable to claim back any charges or fees from the agent, who may not have informed you of the fees or may have glossed over these in the minutest of detail, as the policy document will have had the full charges and fees written into the contract, usually in very small print in a hard to find place.
It is also not possible to claim compensation from the policy provider for the poor performance of their investment policy. Whilst they may well have a poor investment record, they have invested funds from policies that contained an inherent risk.
Whilst it would be gratifying to claim back the lost funds from the Conservative government who encouraged private firms to sell the policies this door is closed as well.
However the good news is that it is possible to make a claim and to receive full compensation for the period of time that you have been opted out if you can prove that you have in fact been mis-sold a pension policy.