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A few months later, Bp. Polycarp wrote to advise of further developments in Romania concerning the Episcopate, noting that the Episcopate had been eliminated in the Church budget, effectively dissolving it in the eyes of the communist government. Further, the provisions of the laws placed Bp. Polycarp in retirement and directed that new leadership for the diocese must have approval of the communist government.
Effectively a prisoner in Romania, Bp. lived on in ''retirement''. He died on [[October 26]], 1958, and was buried at the Monastery of St. John the Baptist in Alba Iulia, Romania.