What happened to the old guys?

In the credits a small clip is played which shows they are the cleaners. They agreed to do this so that the main character didn't turn them over to the police.

There was something in the end credits about their punishment.

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James_Senior is correct there is a clip that plays during the end credits where you see them working as janitors and Mickey Rooney or all of them complain that they are security guards and not janitors, and they do mention that Larry was good enough not to rat them out, but personally I think that they should have been jailed, or be killed off like you see a lot of movie villians including animated ones. And well they were forced to retire so they couldn't be fired anyways.