Yes. That is correct.
Members of the Canadian Forces are under the jurisdiction of the Canadian Forces and the Department of National Defence only until such time as they retire. Once they retire, they're Canadian citizens. They're civilians, as much as any other Canadian citizen would be, and they are no longer under the jurisdiction of the Canadian Armed Forces.
The only exception that could potentially happen is if somebody had caused an offence or had been investigated for and charged with an offence for a time when they were in uniform. You're responsible for as long as you are in uniform. Post-retirement, you could potentially be investigated for any activity that would have taken place before you retired, and there would be room there.
In this case, I would suggest, based on these allegations, that these are members who had retired and who were sought for employment after the fact. That would not have been something internal to defence, and we would not have jurisdiction.