Jace neither Pete Chiodo wanted to rat but Casso&Amuso tried to kill his sister! If the loyalilty means the death nobody would accept the prize.
If you watch the other examples of mobsters who turned informants during the 1980s the mist partvwould keep his mouths shout but the paranoid bosses ordered their death even if there was no proofs to whack them.

Its interesting that the street boss is a man who the only merits was to be a loyal killer in the 1980s and made 18 years with his mouth shout.