The move will see £210m of assets transfer to pension specialist Clara and Wates will invest another £19m into the fund which covers 1,500 current and former staff.

The transfer to Clara is expected to complete in January 2025. Clara specialises in managing member benefits transferred from pension schemes and is overseen by a board of experienced professional independent trustees.

Mike Roberts, Chair of Trustee, Wates Pension Fund, said: “This is a very positive development, providing increased security for members’ benefits.”

“Throughout this process, we have seen the care and commitment Clara has for its members. This, coupled with the additional funding secured from Wates Group and Clara as part of the transfer, has been key to our decision making.”

“We are confident that, with the transfer to Clara, members’ benefits will be more secure and, in the future, move to an insurance company sooner than if they remained in the Fund.”

Amy Hemmett, Head of superfunds, PwC who advised Wates Group on the transaction, said: “This important transaction provides enhanced security for the members of the Wates Pension Fund, both now and for the future.

“This transfer to Clara allows members to benefit from the innovation in end-game solutions whilst removing the risks associated with managing defined benefit schemes in the current regulatory environment.”

“This transaction demonstrates the growing importance of superfunds in the UK pensions landscape, offering the potential for better long-term outcomes for pension scheme members.”