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When a character has to respec, he talks to an NPC (I'll leave the aspect lore out for now) that pops out the equivalent of the character creation screen. The players rebuilds the character as he would wants it to be (he can only use, as starting class, a class he had levels of previously however). Once the player is done, he confirms his choice and his character is transformed back to a level 1 character of the class he picked.
The NPC also gives him 'class level token' for each class levels he had. For an example, a level 16 fighter will be given 15 'fighter class tokens'. For a 14 wizard/2 rogue that picked rogue as starting class, he will receive 14 'wizard class tokens' and 1 'rogue class token'. (This could be changed into a percentage of tokens if necessary.)